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Trump's Castle Funding Extends Tender Offer for 11 3/4% Mortgage Notes Due 2003

Strategic Insights

— 1 min read

Trump's Castle Funding, Inc. and Trump's Castle Associates, L.P., both subsidiaries of Trump Hotels & Casino Resorts, Inc., have extended the Expiration Date for their cash tender offer to purchase all of Castle Funding's 11 3/4% Mortgage Notes due 2003. The tender offer will now remain open until August 14, 1998, unless further extended. The terms and conditions of the tender offer remain as set forth in the Offer to Purchase dated July 9, 1998.

As of August 6, 1998, approximately $100 million in aggregate principal amount of Mortgage Notes have been tendered pursuant to the Offer to Purchase.

Key Takeaways:

  • The tender offer for the 11 3/4% Mortgage Notes due 2003 has been extended to August 14, 1998, unless further extended.
  • The purchase price for each Mortgage Note tendered and accepted for purchase is $940 per $1,000 of principal amount, plus accrued and unpaid interest through the Expiration Date for a total cash payment of $969.05 per $1,000 of principal amount.
  • A minimum tender of 98% of the principal amount of the Mortgage Notes and certain terms and conditions set forth in the Offer to Purchase are required for the tender offer to be consummated.
  • Castle Associates does not anticipate redeeming the Mortgage Notes prior to their stated maturity if the tender offer is not consummated.
  • Approximately $100 million in aggregate principal amount of Mortgage Notes have been tendered as of August 6, 1998.
  • The Tender Offer is made only pursuant to the Offer to Purchase, and questions may be directed to Marc Dien at (310) 282-5063 or (800) 237-5022.

Donaldson, Lufkin & Jenrette Securities Corporation is the Dealer Manager for the Offer to Purchase.

Statistics:

  • $100 million in aggregate principal amount of Mortgage Notes have been tendered as of August 6, 1998.
  • $940 is the purchase price for each $1,000 of principal amount of Mortgage Notes.
  • $969.05 is the total cash payment for each $1,000 of principal amount of Mortgage Notes, including accrued and unpaid interest.

Sources:

  • Castle Funding's press release dated August 7, 1998
  • Offer to Purchase dated July 9, 1998
  • Trump Hotels & Casino Resorts, Inc. press release dated August 7, 1998
  • MacKenzie Partners, Inc. information services (contact information)

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