Revel Obtains Consent to Lower Cash Requirement in Credit Pact
Revel Entertainment Group LLC, the casino operator trying to avoid default, obtained a fifth amendment to its credit pact that lowers its minimum cash requirement.
Lenders are permitting Revel’s minimum liquidity from Feb. 13 through Feb. 19 to be $55 million, down from $75 million previously required, according to a regulatory filing today. The amendment also allows JPMorgan Chase & Co. to arrange $9.5 million in a letter of credit rather than the same amount in an escrow account to fund construction.
Gambling revenue in Atlantic City for all 12 gaming properties fell 13.2 percent in January, to $205.6 million, the New Jersey Office of the Attorney General said in a Feb. 11 statement. Revel contributed about an $8 million total casino win, ahead of only Trump Plaza’s $4.9 million.
Revel’s $900 million term loan due in 2017 traded at 38 cents on the dollar today, according to prices compiled by Bloomberg.
Moody’s Investors Service earlier this month cut its rating on the Atlantic City, New Jersey-based casino to Caa3, two levels above default. Standard & Poor’s last month lowered its rating on Revel’s loan to CC and cut its recovery rating to ‘6’ indicating negligible recovery for lenders in the event of default. S&P has a CCC grade on the company.
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