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Trump $500 million credit facility to be led by Morgan Stanley, UBS
By Sara Rosenberg
New York, Oct. 26 - Trump Hotels & Casinos Resorts Inc. has appointed Morgan Stanley & Co. Inc. and UBS Investment Bank as joint lead arrangers of its proposed $500 million working capital facility, according to a company news release.
Security is a first priority lien on substantially all company assets.
Proceeds will be used to fund immediate capital improvements, as well as certain expansion projects, at current properties, and provide financial resources to potentially invest in additional jurisdictions, the release said.
The facility is being sought in connection with the company's recapitalization plan that was announced Thursday and has the support of bondholders.
The plan calls for the company to file for Chapter 11 by Nov. 29, with the plan being confirmed by mid-April 2005 and consummated by May 1, 2005.
Under the plan, the holders of the Trump Atlantic City and Trump Casino Holdings notes would exchange their notes, a total of about $1.8 billion in principal, for $74 million in cash, $1.25 billion principal amount of a new series of 8.5% senior second priority mortgage notes and $395 million of common stock valued at the same per share purchase price as Donald Trump's investment.
Existing unaffiliated stockholders would keep their interests in their common stock, which would be diluted to 0.05% of the total equity interests of the recapitalized company. They would also receive one-year warrants upon consummation to purchase common stock at the same per share purchase price as Donald Trump's investment.
Trump Hotels is an Atlantic City, N.J., hotel and casino owner and operator.
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