Revel AC said it has filed its voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of New Jersey (Camden) to facilitate its previously announced financial restructuring.

Under the plan of reorganization, Revel will significantly reduce its debt — by more than 82% — from approximately $1.52 billion to $272 million, through a debt-for-equity conversion. Revel has secured votes from a supermajority of its lenders, which is in excess of the amount required for the court to approve the plan.

Revel said the restructuring is not expected to impact its guests, employees or vendors. Throughout the restructuring, Revel intends to continue normal business operations. All services, guest loyalty plans and promotions, dining, scheduled entertainment, programming and events will continue to move forward without change or interruption, and that employees and vendors will be paid in the normal course of business.

Jeffrey Hartmann, Revel’s interim chief executive officer, said, “Backed by overwhelming lender support, we remain on track to complete our financial restructuring ahead of the critical summer season. We will emerge from this recapitalization positioned for long-term success, with the financial capacity to pursue our amenity enhancement opportunities, and the ability to continue providing our guests with a signature Revel experience.”

As previously announced, certain of Revel’s lenders will provide approximately $250 million in debtor-in-possession financing (DIP), approximately $42 million of which constitutes new money commitments and approximately $208 million of which constitutes prepetition debt. In addition, Revel will obtain $335 million in exit financing, which consists of a $75 million revolver and $260 million term loan. The proceeds of the exit facility will be used to provide Revel with additional working capital, fund certain capital expenditures, repay the DIP financing, and pay expenses related to the restructuring upon emergence from Chapter 11.

The company expects to complete its restructuring, which is subject to bankruptcy court approval and the conditions set forth in the restructuring agreement, within 45 days to 60 days and anticipates emerging from Chapter 11 by early summer.

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 to Restructure Through Chapter 11 Prepack, Wednesday, February 20, 2013