(Photo by Craig Allen of Getty Images)
NEW YORK, June 3, 2008--Standard & Poor's Ratings Services said today that its rating and outlook on Trump Entertainment Resorts Holdings L.P. (B-/Negative/--) are unaffected by the company's recent announcement that it has entered into an agreement with Coastal Marina LLC to sell the Trump Marina Hotel and Casino in Atlantic City, NJ. (Donald J. Trump, chairman, Trump entertainment Resorts Holdings, is at top right photo.)
The sale price of $316 million is subject to potential adjustments around working capital and EBITDA performance prior to closing, and closing is subject to certain regulatory approvals.
The sale price of $316 million is subject to potential adjustments around working capital and EBITDA performance prior to closing, and closing is subject to certain regulatory approvals.
Under the terms of the senior secured credit facility, which were amended in conjunction
with the agreement to sell Trump Marina, the company is required to use the greater of $140 million or 50% of the aggregate net cash proceeds to acquire substitute collateral acceptable to the lenders within one year of the sale.
with the agreement to sell Trump Marina, the company is required to use the greater of $140 million or 50% of the aggregate net cash proceeds to acquire substitute collateral acceptable to the lenders within one year of the sale. If acceptable substitute collateral has not been identified within one year, senior secured lenders may require the company to repay bank debt. We expect the other 50% of proceeds from the sale to remain on the balance sheet in the form of excess cash.
(For a complete copy of Standard & Poor's news release, please contact Mimi Barker, New York, 1 212 438 5054, mimi_barker@standardandpoors.com.
(For a complete copy of Standard & Poor's news release, please contact Mimi Barker, New York, 1 212 438 5054, mimi_barker@standardandpoors.com.
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