Revel AC Reaches Agreement with a Majority of Its Lenders to Significantly Reduce Its Debt and Strengthen Its Balance Sheet

Tue Feb 19, 2013 7:48pm EST

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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130220:nBw197239a

* Restructuring will reduce Revel`s debt load by over $1 billion through an
exchange of debt for equity 
* Revel plans to recapitalize through consensual prepackaged Chapter 11
reorganization 
* Lenders will provide the Company with additional liquidity to ensure financial
stability throughout the reorganization process 
* Revel to continue normal business operations and honor obligations in the
ordinary course of business

ATLANTIC CITY, N.J.--(Business Wire)--
Revel AC Inc. ("the Company," "Revel") announced today that it has reached an
agreement with a majority of its lenders to significantly reduce its debt
through a debt-for-equity conversion. Revel plans to implement the restructuring
through voluntary, prepackaged Chapter 11 cases, and intends to complete the
restructuring early this summer. 

The restructuring is not expected to impact Revel`s guests, employees and
vendors. Throughout the restructuring, Revel intends to continue normal business
operations. All services, dining, scheduled entertainment, programming and
events will move forward without change or interruption, and employees and
vendors will be paid in the normal course of business. 

"Today`s announcement is a positive step for Revel," said Kevin DeSanctis,
Revel's Chief Executive Officer. "The agreement we have reached with our lenders
will ensure that the hundreds of thousands of guests who visit Revel every year
will continue to enjoy a signature Revel experience in our world-class
facility." 

After undertaking a comprehensive strategic review of restructuring
alternatives, the Company determined that a prepackaged Chapter 11 would offer
the best opportunity for Revel to strengthen its balance sheet and would provide
the Company with the financial flexibility and resources to invest in the growth
of the business. 

As part of the restructuring, certain of Revel`s lenders will provide
approximately $250 million in debtor-in-possession financing (DIP),
approximately $45 million of which constitutes new money commitments and
approximately $205 million of which constitutes prepetition debt. No tax payer
funds will be used to finance the restructuring. 

"The reduction of debt service expense this agreement facilitates will greatly
improve Revel`s cashflow to better support day-to-day operations," noted Michael
Garrity, Revel`s Chief Investment Officer. "This restructuring positions Revel
for long-term success by providing the Company with the operational flexibility
to invest in the growth of our business." 

The restructuring agreement is subject to satisfaction of certain customary
conditions. 

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

Forward Looking Statements

Statements in this press release that are not statements of historical or
current fact constitute forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties, and other unknown
factors that could impact the Company`s restructuring plans or cause the actual
results of the Company to be materially different from the historical results or
from any future results expressed or implied by such forward-looking statements.
In addition to statements which explicitly describe such risks and
uncertainties, readers are urged to consider statements labeled with the terms
"believes," "belief," "expects," "intends," "anticipates," "plans," or similar
terms to be uncertain and forward-looking. There can be no assurance that the
restructuring transaction described herein will be consummated. The
forward-looking statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in the Company`s
filings with the Securities and Exchange Commission. 

About Revel AC

Revel is smoke-free and features more than 1,800 rooms with sweeping ocean
views. A member of the American Express Gold Hotel Collection, the resort houses
a 130,000-square-foot casino with more than 2,000 slot machines, nearly 100
table games, electronic tables and a Poker Room. Designed to embrace its natural
surroundings, Revel curates a collection of daylife and nightlife experiences
crafted to bring the outside in and the inside out. Indoor and outdoor pools,
gardens, lounges, and a 32,000-square-foot spa provide guests with a relaxing
resort, while an outstanding collection of 14 restaurant concepts from
award-wining chefs and restaurateurs, live entertainment featuring marquee acts
and international artists, nightclubs, a casino that feels like a theatre and a
collection of boutiques in The Row tailor to each guest`s passions. Revel was
most recently named one of the Best Hotels in the Northeast by Amtrak`s Arrive
magazine and one of the Top 10 Best New Hotels in the U.S. by Gayot.com. 

To start your Revel journey, visit www.revelresorts.com. To receive the latest
updates on Revel, become a fan on Facebook at www.facebook.com/revel and follow
@revelresorts on Twitter and Instagram. Revel is located on the Boardwalk at
Revel Blvd in Atlantic City, New Jersey.

Weber Shandwick
Liz Cohen, 212-445-8044
or
Kelly Gawlik, 212-445-8368 

Copyright Business Wire 2013

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