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Trump's $475 Million Headache

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "Donald Trump was supposed to have alleviated a $475 million headache by now.

"Instead, a series of events and conditions beyond Trump's control have complicated his gaming company's ability to sell bonds critical to the future of Trump Marina Hotel Casino.

"First came Gov. James E. McGreevey's Feb. 3 bombshell that he wants to raise the casino-revenue tax, tax casino complimentaries, create a hotel-revenue tax and consider putting slot machines in northern New Jersey racetracks.

"Potential Trump Marina bond investors now also have to consider the impact of rising gasoline prices, declining stock prices, war looming in Iraq, a possible smoking ban in casinos, and the opening of Borgata Hotel Casino & Spa perhaps less than four months from now.

"…Trump Hotels & Casino Resorts had planned to complete the $475 million bond sale `within a few days' of Jan. 31, a company executive testified last month. Exactly where the deal stands today is unclear.

"…Trump Marina's debt comes due in less than nine months, and analysts believe investors will demand higher interest rates the longer the deal lingers. Trump Hotels called off a similar bond sale last spring, saying investors wanted interest rates higher than it would pay.

"…The Division of Gaming Enforcement is closely watching the Trump bond sale, agency spokeswoman Kerry Hand said. The DGE has demanded that the Trump casinos produce a `comprehensive plan' to lower their debt and expand their facilities before they face relicensing in May…"

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