Morgan Stanley and UBS have set pricing on Trump Hotels & Casino Resorts' $500 million credit facility. The loan, launched at a bank meeting on Thursday, will guide the company out of bankruptcy protection. The facility consists of a five-year, $200 million revolver, a seven-year, $150 million delayed draw term loan and a seven-year, $150 million term loan. Pricing on all tranches is LIBOR plus 2 1/2%.
When the process is complete, expected in May, the company will be known as Trump Entertainment Resorts. The company's plan of reorganization will reduce debt by $400 million. The company filed for chapter 11 protection last November.
THCR own and operates four properties including Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino and Trump Marina Hotel Casino located in Atlantic City and the Trump Casino Hotel, a riverboat casino located in Gary, Ind. The facility will allow the company to refurbish and expand current properties and allow it to enter into new markets. Scott Butera, president and chief operating officer, could not be reached by press time.