Atlantic City’s Revel Plans to File Prepackaged Chapter 11

ATLANTIC CITY, NJ–Revel AC Inc. 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.

“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 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 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 & Co. serves as its investment banker for the restructuring.

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