Exhibit 99.1
NEWS RELEASE
For: Trump Hotels & Casino Resorts, Inc.
(NYSE: DJT)
Contact: John P. Burke, Corporate Treasurer
(212) 891-1500
Trump Casino Holdings, LLC Issues Mortgage Notes
For Immediate Release -- New York, NY - March 25, 2003 -- Trump Hotels &
Casino Resorts, Inc. (NYSE: DJT) ("THCR" or the "Company") announced today that
its subsidiary, Trump Casino Holdings, LLC, closed the private placement of $490
million aggregate principal amount of two new issues of mortgage notes,
consisting of $425 million first priority mortgage notes due March 15, 2010,
bearing interest at a rate of 11.625% per year payable quarterly in cash, sold
at a price of 94.832% of their face amount for an effective yield of 12.75%, and
$65 million second priority mortgage notes due September 15, 2010, bearing
interest at a rate of 11.625% per year payable semi-annually in cash, plus 6%
per year payable in pay-in-kind notes. The notes were issued by Trump Casino
Holdings, LLC and Trump Casino Funding, Inc., two wholly-owned subsidiaries of
THCR's operating subsidiary, Trump Hotels & Casino Resorts Holdings, L.P. ("THCR
Holdings"), and are guaranteed on a secured basis, subject to certain exceptions
and exclusions, by the subsidiaries of the issuers, including Trump's Castle
Associates, L.P. (now known as Trump Marina Associates, L.P.), the owner of the
Trump Marina Casino Resort in Atlantic City, New Jersey; Trump Indiana, Inc.,
the owner of the Trump Indiana Riverboat Casino in Gary, Indiana; and THCR
Management Services, LLC, the manager of Trump 29 Casino located in the Palm
Springs, California area. The net proceeds to Trump Casino Holdings were
approximately $464 million.
The net proceeds of the offering were used primarily to redeem and retire
debt of THCR and certain subsidiaries as described below. Donald J. Trump, the
Chairman of the Board, President and Chief Executive Officer of THCR, said, "We
are very pleased to have concluded this financing. Obviously, with world
conditions being what they are, the market has been difficult, but we
persevered." Mr. Trump facilitated the offerings by making a $30 million
investment in the Company which consisted of $15 million principal amount of
second priority mortgage notes and a new issue of Series A Preferred Stock of
THCR with a liquidation preference aggregating $15 million. The Series A
Preferred Stock may in the future be exchanged for approximately 7,895,000
shares of Common Stock of THCR. The Series A Preferred Stock does not pay or
accrue any dividend and may not be exchanged for Common Stock until such time as
the stockholders of THCR approve such issuance. As discussed below, the THCR
Holdings 15-1/2% Senior Secured Notes held by non-affiliated persons were called
for redemption at the cash price of 102.583%, plus accrued interest. A spokesman
for the Company said that, "Without Mr. Trump stepping up to the plate and
buying new notes and accepting stock for his THCR Holdings Senior Secured Notes,
the financing would not have succeeded. Mr. Trump again demonstrated his
commitment to the Company and his faith in its future by investing $30 million
in the Company."
On March 25, 2003, the following debt securities were called for
redemption on April 23, 2003:
-- Trump's Castle Funding, Inc. 11-3/4% Mortgage Notes due 2003;
-- Trump's Castle Funding, Inc. 13-7/8% Increasing Rate
Subordinated Pay-in- Kind Notes due 2005; and
-- Trump Hotels & Casino Resorts Holdings, L.P. 15-1/2% Senior
Secured Notes due 2005
Funds to effect these redemptions at the applicable optional redemption
prices therefor were deposited with the Trustee for the issues on March 25,
2003. Approximately $89.3 million of net proceeds were used to acquire the THCR
Holdings 15-1/2 % Senior Secured Notes in a private transaction from a
non-affiliated third party at purchase price equivalent to the redemption price
for such issue. In addition, a portion of the net proceeds of the offerings were
used to retire approximately $70 million principal amount of bank debt of Trump
Marina Associates, L.P.; approximately $20.3 million principal amount of bank
debt of Trump Indiana, Inc.; and approximately $0.2 million principal amount of
bank debt of THCR Management Holdings, LLC. THCR Holdings also caused
approximately $35.5 million of THCR Holdings 15-1/2% Senior Secured Notes and
$141.9 million of Trump's Castle PIK Notes to be cancelled at closing without
payment. As a result of the offerings, Trump Marina Associates, L.P., Trump
Indiana, Inc. and THCR Management Services, LLC became subsidiaries of Trump
Casino Holdings, LLC, which itself a direct subsidiary of Trump Hotels & Casino
Resorts Holdings, L.P.
As previously reported, Ernst & Young, LLP, the independent auditor of
THCR and its subsidiaries (including Trump's Castle Associates, L.P.) will
re-issue its report on the audited financial statements of Trump's Castle
Associates, L.P. without a going concern qualification.
THCR is a public company which is approximately 47% beneficially owned by
Donald J. Trump. At such time as the Series A Preferred Stock referred to above
is exchanged for Common Stock of THCR, Mr. Trump's beneficial ownership of THCR
would increase to approximately 56%. THCR is separate and distinct from all of
Mr. Trump's real estate and other holdings.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements so long as those statements are
identified as forward-looking and are accompanied by meaningful cautionary
statements identifying important factors that could cause actual results to
differ materially from those projected in such statements.
All statements, trend analysis and other information contained in this
release relative to THCR's or its subsidiaries performance, trends in their
operations or financial results, plans, expectations, estimates and beliefs, as
well as other statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend" and other similar expression, constitute
forward-looking statements under the Private Securities Litigation Reform Act of
1995. In connection with certain forward-looking statements contained in this
release and those that may be made in the future by or on behalf of issuers,
THCR notes that there are various factors that could cause actual results to
differ materially from those set forth in any such forward-looking statements.
The forward-looking statements contained in this release were prepared by
management and are qualified by, and subject to, significant business, economic,
competitive, regulatory and other uncertainties and contingencies, all of which
are difficult or impossible to predict and many of which are beyond the control
of the issuers. Accordingly, there can be no assurance that the forward-looking
statements contained in this release will be realized or that actual results
will not be significantly higher or lower. Readers of this release should
consider these facts in evaluating the information contained herein. In
addition, the business and operations of THCR and its subsidiaries are subject
to substantial risks, which increase the uncertainty inherent in the
forward-looking statements contained in this release. The inclusion of the
forward-looking statements contained in this release should not be regarded as a
representation by THCR or its subsidiaries or any other person that the
forward-looking statements contained in the release will be achieved. In light
of the foregoing, readers of this release are cautioned not to place undue
reliance on the forward-looking statements contained herein.
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