Casino Capitalism by Morgan Stanley

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Atlantic City casino project raises cash

Two weeks after NJ Gov. Chris Christie leaned on Morgan Stanley brass to try again to raise the cash needed to complete its half-built Revel casino in Atlantic City, the money appears to be in hand and workers could be back on the job as soon as next week.

The $1.15 billion financing effort by JPMorgan Chase is expected to be finalized by Feb. 1, sources tell The Post. At that time, Revel Entertainment Chief Executive Kevin DeSanctis hopes to be able to write a $30 million check to Revel owner Morgan Stanley in exchange for the keys to the beachfront casino.


The financing has not closed, however, and sources cautioned that it could still fall apart.

The latest news comes after Christie personally reached out to officials at Morgan Stanley, as first reported by The Post.

Christie threw his considerable heft behind the project with a personal plea to Morgan Stanley brass because he believes it's critical to help Atlantic City, which has been hit hard by the recession.

Indeed, re-igniting the construction of the project -- which Morgan Stanley now values at $28 million -- could result in as many as 6,000 jobs, according to one person familiar with the project.

The new financing package comes a month after JPMorgan failed to attract investors. This time around the bankers sold the toughest part of the loan package -- the mezzanine chunk, which represents the equity stake -- first.

Construction kicked off in 2007 just before the markets plunged and funding dried up, forcing Morgan Stanley to plow some $1.2 billion into Revel.

Spokesmen for DeSanctis, JPMorgan and Morgan Stanley declined comment.