Trump looks to enter into commitment for first-lien exit financing

By Caroline Salls

Pittsburgh, Feb. 11 – Trump Entertainment Resorts, Inc. requested court approval to enter into a commitment letter under which IEH Investments I LLC would provide first-lien exit financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The amount of the proposed financing would be equal to $13.5 million, plus the outstanding principal amount of loans under Trump’s $20 million debtor-in-possession facility and related interest, unpaid fees and costs and expenses.

In addition to repaying the DIP loan, proceeding from the exit financing would go toward payment of administrative expenses, priority claims and other obligations incurred in connection with the Chapter 11 cases or due in connection with the company’s emergence from bankruptcy and/or financing ongoing working capital and general corporate purposes.

The exit facility would mature five years from the effective date of the company’s Chapter 11 plan.

Interest will be 8%, payable in kind.

A hearing is scheduled for March 4.

Trump Entertainment Resorts, an Atlantic City-based owner and operator of casino resort properties, filed for bankruptcy on Sept. 9. The Chapter 11 case number is 14-12103.

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