Trump $470 million note deal restructured into first, second mortgage tranches

By Paul A. Harris

St. Louis Mo., May 9 - Trump Casino Holdings, LLC and Trump Casino Funding Inc.'s $470 million note offering has been restructured into tranches of first and second mortgage notes, a syndicate source told Prospect News Thursday. The deal was first announced as $470 million of eight-year first mortgage notes.

The senior tranche will be comprised of $340 million of first mortgage notes due 2010 (B3/B-). The notes are non-callable for four years and are guaranteed on a first priority basis by the subsidiaries. Price talk is 9¾%-10%.

The junior tranche will be comprised of $130 million of second mortgage notes also due 2010 and also non-callable for four years (ratings to be determined). Price talk is 12¾%-13%.

The deal is expected to price Friday or Monday.

Deutsche Bank Securities Inc. is the bookrunner.

Proceeds from the Rule 144A offering will be used by the New York City gaming firm to repay or acquire substantially all of the outstanding debt of Castle Associates and Trump Hotels & Casino Resorts Holdings LP and the bank debt of Trump Indiana, Inc.

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