Coastal Marina, LLC, ("Coastal Marina") an affiliate of Coastal Development, announced today that it has entered into an agreement to purchase the Trump Marina Hotel Casino in Atlantic City from Trump Entertainment Resorts, Inc.
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, 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 Buffetts 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 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 Companys debt, and potential projects to diversify our interests outside of Atlantic City."
The agreement is subject to certain regulatory approvals and customary closing conditions.