Trump in Casino Debt Deal

Trump Hotels & Casino Resorts Inc. said key bond holders had agreed to take the company into voluntary bankruptcy and restructure its $1.8 billion in debt to get a $400 million capital infusion.

CSFB's DLJ Merchant Banking Partners III will co-invest $400 million with Trump and take a majority stake.

Trump will remain chairman of the company, which owns four casinos, including the Taj Mahal in Atlantic City, and has been seeking for months to restructure its debt.

Trump himself will invest $55 million in the new company with CSFB and $15.9 million in notes. He would also receive land in Atlantic City and his real estate firm would get the right of first offer to serve as contractor for new development.

The restructuring will cut the company's annual cash interest expense by about $110.2 million.

I remember reading about this and must say I'm impressed that he pulled this deal off - - but then "The Donald" knows the "art of the deal".

Posted by Uptown Girl

Posted by: Lawrenkm at 01:41 AM | Comments (2) | Add Comment
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