Published on 3/13/2003 in the Prospect News High Yield Daily.
New Issue: Trump Casino prices $468 million proceeds of notes in two tranches
By Paul A. Harris
St. Louis, March 13 - Trump Casino Holdings, LLC and Trump Casino Funding, Inc. priced approximately $468 million proceeds in two tranches of new high-yield notes on Thursday, according to a syndicate source.
Deutsche Bank Securities Inc., Credit Suisse First Boston and UBS Warburg were joint bookrunners. Jefferies & Co. was co-manager.
The first tranche was comprised of $425 million ($402.82 million proceeds) of 11 5/8% first priority mortgage notes due March 15, 2010 (B3/B-), which priced at 94.781 to yield 12¾%. Price talk was for an 11 5/8% coupon and a 12¾% yield.
The second tranche was comprised of $65 million of second priority mortgage notes due Sept. 15, 2010 (Caa1/CCC), which priced at par to yielding 17 5/8%. The second priority notes have a cash coupon of 11 5/8% and a PIK coupon of 6%. Donald Trump purchased $15 million of the second priority notes, according to the syndicate source.
Proceeds from the Rule 144A deal will be used to refinance debt.
The issuer is an Atlantic City-based gaming firm.
| Issuer: | Trump Casino Holdings, LLC and Trump Casino Funding, Inc.
|
| Bookrunners: | Deutsche Bank Securities, Credit Suisse First Boston, UBS Warburg (joint)
|
| Co-manager: | Jefferies & Co.
|
| Settlement date: | March 25, 2003
|
|
|
| Tranche One
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| Security description: | First priority mortgage notes
|
| Face amount: | $425 million
|
| Proceeds: | $402,819,250
|
| Maturity: | March 15, 2010
|
| Coupon: | 11 5/8%
|
| Price: | 94.781 |
|
| Yield: | 12¾%
|
| Spread: | 950 basis points
|
| Call features: | Callable on March 15, 2007 at 108.719, then at 104.359, declining to par on March 15, 2009 and thereafter
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Rule 144A Cusip: | 89816RAA5
|
| Price talk: | 11 5/8% coupon, 12¾% yield
|
|
|
| Tranche Two
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| Security description: | Second priority mortgage notes
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| Amount: | $65 million ($15 million purchased by Donald Trump)
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| Maturity: | Sept. 15, 2010
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| Cash coupon: | 11 5/8%
|
| PIK coupon: | 6%
|
| Price: | Par
|
| Yield: | 17 5/8%
|
| Call features: | Callable on Sept. 15, 2007 at 108.719, 104.359, par on Sept. 15, 2009 and thereafter
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Rule 144A Cusip: | 89816RAC1
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