Trump Hotels & Casino Resorts, Inc. (“THCR” or the “Company”) announced today that its subsidiary, Trump`s Castle Associates, L.P., the owner and operator of Trump Marina Hotel Casino in Atlantic City, New Jersey, entered into a $70.0 million term credit facility with a fluctuating interest rate based upon the Eurodollar rate (7.34% if the loan was funded today) and maturing on November 1, 2003. Funding of the credit facility is subject to the approval of the New Jersey Casino Control Commission, and the facility will be secured on a first-priority basis by substantially all of the real and personal property owned or leased by Trump`s Castle Associates. The net proceeds of the loan, when funded, will be used to retire Trump`s Castle Funding, Inc.`s entire $62.0 million principal amount 10-1/4% Senior Secured Notes due April 30, 2003 and Trump`s Castle Hotel & Casino, Inc.`s entire $5.0 million principal amount 10-1/4% Working Capital Loan due April 30, 2003, both of which have been called for redemption on July 12, 2002.
Donald J. Trump, the Company`s Chairman, Chief Executive Officer and President, said, “This loan will reduce Trump`s Castle`s interest expense and will be virtually co-terminus with its current $242.1 million 11-3/4% Mortgage Notes. With Trump Marina`s strong operating results and assuming a continuation of this trend, I am confident that the refinancing of this property`s loans, which don`t mature until November 2003, will be favorable.”
THCR owns and operates Trump Plaza Hotel & Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino in Atlantic City, New Jersey, and Trump Indiana, a riverboat casino at Buffington Harbor, Indiana on Lake Michigan. THCR also manages Trump 29 Casino located in the Palm Springs, California area. It is the exclusive vehicle through which Donald J. Trump will engage in new gaming activities in both emerging and established gaming jurisdictions in both the United States and abroad.
THCR is a public company which is approximately 46.4% owned by Donald J. Trump. The Company is separate and distinct from all of Mr. Trump`s other holdings.