"We had approved a deal on a more conceptual basis in January," a commission spokesman tells GlobeSt.com. "When the terms were finalized they were materially different than what we were [initially] presented with. We had to take another look. The commission concluded that the Trump entities had met their burden and that they had established that they would continue to meet our financial stability requirements upon the confirmation of this transaction."
The sale is a two-traunch deal, consisting of a $425-million issuance of first-mortgage notes and $65 million in second-mortgage notes. The notes are being issued by Trump Casino Holdings LLC and Trump Casino Funding Inc., two wholly owned subsidiaries of THCR's operating subsidiary, Trump Hotels & Casino Resorts Holdings, LP.
Trump, board chairman, president and CEO of THCR, agreed to purchase $15 million of the second priority mortgage notes and $15 million of THCR stock.
"I am pleased that despite difficult capital market conditions and the looming threat of war, the company has been successful in the sale of these bonds," Trump says. "My strong belief in this company is evident by my commitment of $30 million of personal assets to this financing."
If the offering closes later this week as expected, a portion of proceeds will be used to pay off more than $300 million in Trump Marina debt due later this year. The rest will go toward paring down other debt incurred by Trump's Castle Associates, Trump Hotels & Casino Resorts Holdings LP, Trump Indiana Inc. and THCR Management Services LLC, company officials state.
"The company was facing the maturity of its Marina debt, which is due is November," THCR treasurer John P. Burke tells GlobeSt.com. "Donald has reaffirmed his confidence in the company by investing $30 million in this transaction, and the company is able to finance that impending maturity."
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