JPMorgan Agents $150MM Facility Amendment for Revel
Revel AC, the parent company of Revel Entertainment Group, announced that the company completed an amendment and restatement of its existing first lien credit dated May 21, 2013, increasing the aggregate principal amount from $75 million to $150 million. JPMorgan Chase acted as administrative agent.
Proceeds from the term loan, along with proceeds of borrowings under the revolving Tranche A-2, will be used to repay outstanding revolving loans of approximately $58 million under the original first lien credit agreement. Proceeds from additional revolving loans under Tranche A-1 and Tranche A-2 will be used for working capital.
The principal amount of the revolving credit facility was increased from $75 million to $100 million, and was converted into two tranches consisting of: a Tranche A-1 having a principal amount of $25 million with no change to the previous interest rate of LIBOR plus 6.00% and a Tranche A-2 having a principal amount of $75 million with an interest rate of LIBOR plus 6.50%.
The amendment and restatement also includes a new first lien term loan facility consisting of a Tranche B having a principal amount of $50 million with an interest rate of LIBOR plus 9.00%. All interest on the Tranche B term loans are payable-in-kind in the form of an increase of the outstanding principal amount.
Revel also announced that its board of directors has decided to explore strategic alternatives for the company. During the board’s evaluation of possible strategic alternatives, Revel will continue operations under its current business strategy.
Revel has retained Moelis & Company as its financial advisor and White & Case as its legal advisor.
Previously on abfjournal: Revel Hires Kirkland & Ellis, Moelis to Support Restructuring, November 5, 2013