Revel ups first-lien term loan to $850 million, eliminates second-lien

By Sara Rosenberg

New York, Feb. 1 - Revel Entertainment Group LLC increased its six-year first-lien term loan B (B+) to $850 million from $700 million and removed the $150 million 61/2-year second-lien term loan from the capital structure, according to a market source.

In addition, pricing on the first-lien term loan was reduced to Libor plus 750 basis points from Libor plus 800 bps and the Libor floor was trimmed to 1.5% from 2%, the source said.

Also, call protection on the loan was changed to non-callable for two years, then at 102 in year three and 101 in year four, from non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

The original issue discount on the loan was unchanged at 981/2.

Price talk on the second-lien loan that has been eliminated was Libor plus 1,100 bps with a 2% floor and a discount of 98. This tranche was also non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the construction of a casino and hotel in Atlantic City, N.J.

Other funding will come from mezzanine debt that has been upsized to $305 million from $295 million. The tranches will be secured by ERGG escrow proceeds.

The incremental borrowing of approximately $10 million is due to pre-funding of first-lien term loan interest, the source added.

Revel Entertainment is a gaming and entertainment company.

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