February 14, 2013 at 5:36 PM
Trump Entertainment Resorts, Inc. today has entered into an Asset Purchase Agreement to sell its Trump Plaza Hotel and Casino in Atlantic City to Meruelo Gaming Holdings, LLC, an affiliate of The Meruelo Group. The transaction is subject to receipt of approval from, and the release of the mortgage held by, Trump Entertainment Resorts’ senior lienholder (an entity affiliated with Icahn Partners, L.P.), as well as receipt of required approvals from New Jersey regulatory authorities and other customary closing conditions.
The sale price under the agreement is $20 million, subject to a working capital adjustment at closing. Assuming satisfaction or waiver of all closing conditions, the anticipated closing date of the transaction is on or before May 31, 2013. Trump Entertainment Resorts expects to use the net proceeds from the transaction to reduce its long-term debt.
"The sale of Trump Plaza to the Meruelo Group is wonderful news for the property and for Atlantic City," said Robert Griffin, Chief Executive Officer of Trump Entertainment Resorts. "This transaction shows that there is continued interest to invest in Atlantic City."
“Trump Plaza is one of the world’s most recognized gaming resort destinations and is an integral part of the Atlantic City landscape. Our company is thrilled to have the opportunity to become the new owners of this property, and we are firmly committed towards establishing it as one of the elite destinations in Atlantic City and on the East Coast,” said Alex Meruelo, founder and CEO of the Meruelo Group.
Trump Entertainment Resorts, Inc. owns and operates two casino resort properties: Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, both of which are located on the Boardwalk in Atlantic City, New Jersey. Together, at these properties, the company operates over 4,100 slot machines, over 250 table games and over 2,900 hotel rooms.