Says $2.8 billion casino project will boost ailing Atlantic City market but could ignite stiff convention competition
Moody’s Investors Service says the $2.8 billion Revel casino project will boost the ailing Atlantic City market but could ignite stiff competition among the gaming industry for conventions.
The credit ratings agency likes the fact that Revel is designed to accommodate large convention groups, a highly profitable segment that currently represents only a small piece of the A.C. market.
“We believe Revel can expand this segment and boost overall Atlantic City market visitation, which will benefit all [casino] operators at least for a period after its opening,” Moody’s wrote in a report cited by The Press of Atlantic City.
On the down side, Revel’s success “could come at the expense of other properties,” Moody’s said.
“Revel is likely to pursue Borgata’s customer base,” the report said.
Revel is pursuing a $1.15 billion financing deal to finish the half-built casino. The company’s funding plan includes two private loans of $850 million and $305 million, according to The Press. Revel also is set to receive $261.4 million in state tax reimbursements over a 20-year period to solidify its financing.
Revel is expected to complete the financing deal this week, which would allow construction to resume on the building's interior with a view toward a 2Q2012 opening.
Moody's: Revel will lift A.C.
February 9, 2011