Revel AC Reduces Debt in Chapter 11 Exit
Revel AC announced that it successfully completed its financial restructuring and emerged from Chapter 11 of the United States Bankruptcy Code. Through the restructuring plan, which has been approved by both the U.S. Bankruptcy Court for the District of New Jersey (Camden) and the New Jersey Casino Control Commission, Revel reduced its outstanding debt by approximately $1.2 billion, or 82%, and its annual interest expense on a cash basis by $98 million, or 96%.
With the completion of the restructuring today, Revel closed on its exit financing, which provides a $75 million revolver to fund working capital and a $275 million term loan to pay expenses related to the restructuring and repay the outstanding borrowings under the debtor-in-possession financing.
Jeffrey Hartmann, Revel’s interim chief executive officer said, “We view this as a significant milestone for Revel and now turn our undivided attention towards growing our casino revenue base and are singularly focused on attracting guests to the property through an expanding range of amenities and exciting new programming. We have already made progress on this front with the recent opening of Pearl Lounge, our players’ lounge and high-limit slots area, and Relish, a 24-hour, three-meal-per-day restaurant, and our guests can look forward to additional positive developments in the coming months. Greater casino floor appeal, new gaming rewards, seven-day-a-week programming, and the upcoming openings of a Noodle Bar and HQ Beach Club will all add to our unique offering and further solidify our position as the premier casino resort in the Northeast.”
“This is truly a monumental day for Revel. Thanks to the support of our lenders and the dedication of our fantastic employees, we have completed a transformational financial restructuring not only successfully, but in time for the important summer season,” commented Dennis Stogsdill, Revel’s chief restructuring officer. “With a right-sized balance sheet, reduced debt load, and improved cash-flow, we have emerged from this process stronger and better positioned for success.”
Previously on abfjournal.com: