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Revel to relaunch downsized $850 million credit facility on Tuesday
By Sara Rosenberg
New York, Jan. 24 - Revel Entertainment Group LLC will relaunch a downsized $850 million credit facility with a bank meeting on Tuesday, according to sources.
JPMorgan is the lead bank on the deal.
The facility consists of a $700 million six-year first-lien term loan B talked at Libor plus 800 basis points and a $150 million 61/2-year second-lien term loan talked at Libor plus 1,100 bps, sources said.
Both term loans have a 2% Libor floor and are non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.
The first-lien term loan is being offered at 981/2, while the second-lien is being offered at 98, sources continued.
In November, the company first approached the market with its credit facility, and at that time, the deal was structured as an $800 million first-lien loan and a $472 million second-lien loan.
The first-lien term loan had been talked at Libor plus 700 bps with a 2% Libor floor and an original issue discount of 98 and later was flexed to Libor plus 825 bps with a discount of 97, and the second-lien loan had been talked at 12.5% with a discount of 97.
The first-lien loan was non-callable for one year, then at 103 in year two, 102 in year three, and 101 in year four, while the second-lien was non-callable for three years, then at 106 in year four, 103 in year five and 101½ in year six.
At the time that the original deal was being marketed, sources had said that investors were hesitant to get involved as they were hoping for some sort of junior debt to decrease the bank deal.
Now, with the new structure, Revel is planning to get mezzanine debt, which is why the credit facility is coming back in smaller form, sources explained.
Proceeds will be used to help fund the construction of a casino and hotel in Atlantic City, N.J.
Revel Entertainment is a gaming and entertainment company.
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