Coastal Marina, LLC, (“Coastal Marina”)
an affiliate of Coastal Development, LLC, announced today that it has
entered into an agreement to purchase the Trump Marina Hotel Casino in
Atlantic City, New Jersey from Trump Entertainment Resorts, Inc.
(NASDAQ: TRMP) (“Trump Entertainment Resorts”).
Coastal Marina has agreed to pay Trump Entertainment Resorts $316
million to complete the transaction. As part of the transaction, the
parties have also agreed to end prior, unrelated litigation, with
prejudice, upon the closing of the transaction.
Upon successful acquisition of the property, Coastal Marina will
re-brand and refurbish the property into a new destination resort under
the “Margaritaville™”
brand. Richard T. Fields, chairman of Coastal Marina, said: “Together
with Jimmy Buffett’s team at Margaritaville™,
our plans are to create an exciting new property that we believe will
tap its full potential and make it one of the most successful
destination gaming resorts in Atlantic City. In the weeks and months
ahead, there will be additional announcements and more details about the
transition of ownership and our new resort concept.”
Donald J. Trump, the chairman of Trump Entertainment Resorts, remarked: “They
are buying a wonderful building in a great location. It has been an
important part of our company with a loyal customer base and a dedicated
team.”
Mark Juliano, chief executive officer of Trump Entertainment Resorts,
said: “The execution of this transaction will
provide us with additional financial flexibility to effectively master
plan the future path of our company in the midst of an overall
transformation which has already been marked by many successes. As we
look forward to the opening of the new 782 room hotel tower and Il
Mulino restaurant at the Taj Mahal later this year, we are encouraged by
the success of the projects we have already introduced, including the
refurbished casino floors, upgraded room products and brand new
penthouse suites at the Taj Mahal and Plaza. Now we are closely
evaluating the variety of options before us to create value for our
shareholders, including additional development in Atlantic City,
reducing the Company’s debt, and potential
projects to diversify our interests outside of Atlantic City.”
The agreement is subject to certain regulatory approvals and customary
closing conditions.
The Trump Marina Hotel Casino covers approximately 14 acres and includes
a 27-story hotel with 728 guest rooms, including 153 suites. The casino
offers approximately 79,000 square feet of gaming space and
approximately 58,000 square feet of convention, ballroom and meeting
space. Trump Marina also features an approximately 540-seat
cabaret-style theater, a nightclub, three players clubs, four retail
outlets, six restaurants, a cocktail lounge, a recreation deck complete
with a health spa, outdoor pool, tennis courts, basketball courts and
jogging track. The hotel and casino also has an 11 bay bus terminal and
a roof-top helipad, as well as a nine story parking garage capable of
accommodating approximately 3,000 cars. The Trump Marina Hotel Casino
includes the lease for the Senator Frank S. Farley State Marina.
Latham & Watkins, led by partner Raymond Lin, and Bear Stearns & Co.,
Inc., led by Senior Managing Director Kenneth Shea, respectively,
provided legal counsel and financial advisory services to Mr. Fields and
Coastal Marina in connection with the transaction.
Weil, Gotshal & Manges LLP, led by partners J. Philip Rosen and Malcolm
Landau, and Merrill Lynch & Co., Inc, led by managing director Ragavan
Bala, repectively, provided legal counsel and financial advisory
services to Trump Entertainment Resorts in connection with the
transaction.
Coastal Development, LLC is a privately held company based in New York
City that specializes in financing and developing resort destinations,
luxury hotels and gaming facilities. An affiliate of Coastal
Development, LLC is also the largest shareholder of Suffolk Downs
racetrack in Boston, Massachusetts.
Trump Entertainment Resorts, Inc. owns and operates Trump Taj Mahal
Casino Resort and Trump Plaza Hotel and Casino, located on the Boardwalk
in Atlantic City, New Jersey, and Trump Marina Hotel Casino, located in
Atlantic City’s Marina District. The Company
is the sole vehicle through which Donald J. Trump, the Company’s
Chairman and largest stockholder, conducts gaming activities and is
separate and distinct from Mr. Trump’s real
estate and other holdings.
PSLRA Safe Harbor for Forward-Looking Statements and Additional
Available Information
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 and information concerning
plans, expectations, estimates and beliefs, as well as other statements
including words such as “anticipate,”
“believe,” “plan,”
“estimate,” “expect,”
“intend,” “will,”
“could,” “optimistic,”
“can” and other
similar expressions, 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 Trump Entertainment
Resorts, 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 reflect the
opinion of management as of the date of this release 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 Trump Entertainment Resorts. Accordingly, there can be no
assurance that the forward-looking statements contained in this release
will be realized. Readers are hereby advised that developments
subsequent to this release are likely to cause these statements to
become outdated with the passage of time or other factors beyond the
control of Trump Entertainment Resorts. Trump Entertainment Resorts does
not intend, however, to update the guidance provided herein prior to its
next release or unless otherwise required to do so. Readers of this
release should consider these facts in evaluating the information
contained herein. In light of the foregoing, readers of this release are
cautioned not to place undue reliance on the forward-looking statements
contained herein. Additional information concerning the potential risk
factors that could affect Trump Entertainment Resorts’
future performance are described from time to time in the Trump
Entertainment Resorts’ periodic reports filed
with the SEC, including, but not limited to, the Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q. These reports may be viewed
free of charge on the SEC’s website, www.sec.gov,
or on Trump Entertainment Resorts’ website, www.trumpcasinos.com.
