Trump Plans Mortgage Note Offering

Trump Hotels & Casino Resorts, New York, is offering $485 million in mortgage notes for private placement through its subsidiaries Trump Casino Holdings and Trump Casino Funding.The offering will be made in two series: one of $420 million, due March 2010, to be offered at a discount to face value; and another of $65 million due at a later date. THCR said the proceeds will be used to pay off its debt and that of its associated companies. Donald J. Trump, the real estate magnate who is chairman and president of THCR, may acquire up to $15 million of the second offering, the company said. The interest rate and other terms on the notes are yet to be determined. However, THCR anticipates that "the second mortgage notes will pay interest in cash at the same rate as the first mortgage notes and additional interest in kind at a total rate to be determined." The offering is expected to be "guaranteed on a secured basis" by some subsidiaries of the issuer.