Trump Atlantic City proposing to lower coupon, extend maturity on 11¼% mortgage notes

New York, April 5 - Trump Atlantic City Associates has proposed to bondholders that it lower the coupon and extend the maturity on its $1.3 billion of 11¼% mortgage notes due 2006, according to a filing with the Securities and Exchange Commission.

The offer was made to a committee of noteholders as part of Trump AC's efforts to refinance or modify the terms of the notes, the company added. Trump AC also proposed modifying some covenants.

Trump AC said the proposed transaction would reduce interest expense and "hopefully allow" it to finance a capital improvements program, including the possible construction of additional hotel rooms at the Trump Plaza Hotel and Casino and the Trump Taj Mahal Casino Resort in Atlantic City.

However discussions so far "have not resulted in a transaction," according to the SEC filing.

Trump Atlantic City also said it believes that based on its current cash flow forecasts for 2002 it will have sufficient cash flow to meet debt service and operating expense requirements throughout 2002.

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