Revel AC announced that the U.S. Bankruptcy Court for the District of New Jersey (Camden) has confirmed Revel’s prepackaged plan of reorganization.

The plan was unanimously accepted by creditors voting on the plan in connection with the company’s voluntary pre-packaged solicitation of votes. Revel expects to emerge from Chapter 11 before the end of May after the conditions to effectiveness of the plan are satisfied.

Revel has secured $350 million in exit financing, including a $75 million revolver to fund working capital and a $275 million term loan, which will be used to pay expenses related to the restructuring and repay the outstanding borrowings under the debtor-in-possession financing.

The plan will substantially reduce Revel’s debt load from approximately $1.52 billion to $272 million, through an exchange of debt for equity, and annual interest expense will decrease from approximately $102 million to $46 million. A significant amount of the cash that was previously used for interest payments will now be available to fund ongoing operations. On a cash basis, the interest expense will be reduced by 96%, from $102 million to $4 million, thereby improving cash-flow.

Jeffrey Hartmann, Revel’s interim chief executive officer, commented, “The confirmation of our plan is the last major milestone of the restructuring process. We look forward to officially emerging from Chapter 11 by the end of this month with a right-sized balance sheet and a significant reduction in our annual interest expense. The restructuring has been nothing short of transformative for Revel, and I would like to thank our lenders for their ongoing faith in our business, as well as our guests, vendors and employees for their continued support.”

Revel’s legal advisor in connection with the restructuring is Kirkland & Ellis. Alvarez & Marsal serves as its restructuring advisor and Moelis & Company serves as its investment banker for the restructuring.

Previously on

Revel Receives Court Approval for $250MM DIP Financing, Friday, April 19, 2013