Trump not wasting away in Margaritaville; Charter up on debt exchange; Quebecor gains; Linens firms

By Stephanie N. Rotondo

Portland, Ore., May 29 - Trump Entertainment Resorts Inc. was not looking for the lost shaker of salt Thursday, as the company's bonds gained as much as 8 points on the news of an asset sale.

The Atlantic City casino operator entered into an agreement to sell its Trump Marina Hotel and Casino to Coastal Marina LLC, according to a press release published early Thursday. In the release, the new owners will rebrand the establishment under the Margaritaville name.

The news gave the company's bonds a boost, and top management said it was looking at other options to improve shareholder value - including decreasing its debt.

Meanwhile, Charter Communications Inc. announced that one of its subsidiaries would exchange up to $500 million in debt. That caused the telecommunications provider's debt to gain anywhere from 2 to 3 points on the day.

Quebecor World Inc. also announced an asset sale Thursday. The commercial printer said it would unload its European operations as part of its restructuring efforts, calling the sale an "important step" of that process. Investors seemed to agree, as the company's bonds gained at least a deuce during the session.

A short squeeze might be the reason for recent gains in Linens n'Things' paper - at least according to one trader. The trader said that the bonds moved up a couple points during trading, while others saw the notes essentially unchanged.

Trump debt rises

Trump Entertainment was deemed one of the "more notable" names during Thursday's session, a trader said, after the news of an asset sale hit the streets.

The trader quoted the 8½% notes due 2015 at 67 bid, 68 offered, up 8 points on the day. Another trader called the bonds 6-points better at 66 bid, 67 offered. The second trader added that the debt had gotten as good as 67 bid, 70 offered in early trading but "came back on profit taking."

At another desk, a trader placed the notes at 67 bid, 68 offered, versus levels of 60 bid, 61 offered previously.

In a press release issued early Thursday morning, Coastal Marina LLC announced that it had entered into an agreement to buy Trump Marina Hotel Casino for $316 million. Under the terms of the sale, both companies have also agreed to end previous unrelated litigation.

According to the release, the hotel and casino will be rebranded under the Margaritaville moniker.

"They are buying a wonderful building in a great location. It has been an important part of our company with a loyal customer base and a dedicated team," said Donald Trump, chairman of the company, in the release.

"The execution of this transaction will provide us with additional financial flexibility to effectively master plan the future path of our company in the midst of an overall transformation, which has already been marked by many successes," noted Mark Juliano, chief executive officer.

In early May, Trump reported a wider quarterly loss for the first quarter. As a result, Standard & Poor's cut its rating on the gaming company.

Trump Entertainment Resorts is an Atlantic City, N.J.-based hotel and casino operator.

Elsewhere in the sector, a trader said Tropicana Entertainment LLC's 9 5/8% notes due 2014 were "up higher in sympathy," closing 3 points stronger at around 56.

Meanwhile, Harrah's Operating's 5¾% notes due 2017 fell half a point to 56 bid.

Debt exchange helps Charter

Charter Communications' paper gained some ground on the back of a debt exchange announcement.

One trader said there was "a lot of action" in the name, quoting the 10¼% notes due 2010 - both the old and new CUSIP - at 99 bid, par offered. The 10¼% notes due 2013 ended the session at 92 bid, 93 offered, while the 11% notes due 2015 closed at 85 bid, 86 offered. The trader also saw the 9.92% notes due 2011 and the 10% notes due 2014 at 62.75 bid, 63.75 offered and the 11 1/8% notes due 2014 at 63.75 bid, 64.75 offered.

Elsewhere, a trader deemed the debt 3 points higher, with the 10% notes of 2014 at 62.5 bid, 63 offered.

Charter announced that it would exchange up to $500 million of the 10¼% notes due 2010 for additional 10¼% notes due 2013. Like many companies that have successfully completed similar offers in recent weeks, Charter's goal is to improve its financial position by extending debt maturities.

Charter Communications is a St. Louis-based cable and internet provider.

In the rest of the telecommunications arena, Level 3 Communications' 5 7/8% notes due 2015 slipped half a point to 95.75 bid.

Quebecor bonds up on asset sale

A deal to sell its European operations for just over $200 million boosted Quebecor World's bonds Thursday.

A trader said the Canadian company's debt was "higher today, definitely," its 6 1/8% notes due 2013 "close to 50," up 2 to 3 points. Another source called the 6 1/8% notes up nearly 2.5 points at 49.5 bid.

Another trader saw the 7¾% notes due 2016 end the session at 98 bid, 98.5 offered.

Quebecor said it would sell its European assets to Dutch investment firm Hombergh/De Pundert Group. According to the agreement, the firm will assume €65 million in debt and a €21.5 million five-year note with 7% interest, payable to Quebecor. The company called the sale "an important step" in its restructuring efforts.

Quebecor is a Montreal-based commercial printing company.

Shorts helping Linens' notes

Linens n'Things floating-rate notes due 2014 have moved up over the last few sessions, and one trader is attributing the movement to a short squeeze.

The trader pegged the notes at 43 bid, 46 offered, up a couple points.

But another trader, who quoted the debt at 43.5 bid, 44.5 offered, said that was "the same level they have been."

Still another source agreed that the bonds have improved, but added that the issue was "already quoted up [Wednesday,] but it is up from previous trading levels." He placed the bonds round 44.

Linens n'Things is a Clifton, N.J.-based retailer specializing in home decor and accessories.

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