Trump Hotels to get $100 million interim financing via Beal Bank

By Sara Rosenberg

New York, Nov. 1 - Trump Hotels & Casino Resorts Inc. will get a $100 million interim financing facility via sole lead arranger Beal Bank as part of its previously announced recapitalization plan, according to a company news release.

Security is substantially all company assets.

Proceeds from the facility will be used to fund some business costs, including capital expenditures, wages, trade and vendor contracts and leases.

As was previously reported, the company will also get a $500 million working capital facility via joint lead arrangers Morgan Stanley & Co. Inc. and UBS Investment Bank as part of the recapitalization.

Proceeds from the working capital facility will be used to fund immediate capital improvements, as well as certain expansion projects at current properties, and to provide financial resources to potentially invest in additional jurisdictions.

The recapitalization plan calls for the company to file for Chapter 11 bankruptcy 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 8½% 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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