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Trump Entertainment Selling Casino-Hotel for $253M

GARY, IN-The publicly held company from Atlantic City agrees to sell a subsidiary that owns and operates a riverboat casino-hotel in Buffington Harbor here to Majestic Star Casino LLC.

By Brian K. Miller | Updated on November 07, 2005

GARY, IN-Trump Entertainment Resorts Inc. is selling its Buffington Harbor riverboat casino-hotel here for $253 million. The agreement calls for the Atlantic City-based public company to sell its Trump Indiana Inc. subsidiary, which owns and operates the property, to Majestic Star Casino of Las Vegas.

Majestic and Trump Indiana are tightly aligned in Buffington Harbor. Majestic owns a riverboat casino adjacent to Trump Indiana and, through a joint venture, Majestic and Trump Indiana own, develop and operate all common land-based and waterside operations in support of their Buffington Harbor properties, which total about 40,000 sf. In addition, through another joint venture, Trump Indiana and an affiliate of Majestic also operate a parking garage at Buffington Harbor.

The sale, which represents approximately 8.1 times the trailing 12-month EBITDA, is expected to close by the end of the year. The $227 million in net sale proceeds will be invested in Trump Entertainment’s three other properties, which all are located in Atlantic City. Those properties are Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, located on the Boardwalk in Atlantic City, and Trump Marina Hotel Casino, located in Atlantic City’s Marina District.

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