EFTA01385365.pdf

3 January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite flow of $251 million in 2018. Using our projected total debt of $4.36 billion, we estimate Golden Nugget will end the year with leverage of 7.4x. Factoring consolidated cash of $167 million, we estimate net leverage at 7.2x. For 2018, we are projecting Golden Nugget will generate Adjusted EBITDA of $640 million (+9.5% versus S585 million) on revenues of $3.48 billion (+3.5% versus $3.37 billion). Factoring capital expenditures of $135 million, cash interest of $250 million and cash taxes of $25 million, we project free cash flow of $230 million in 2018. Using our projected total debt of $4.13 billion and cash interest of $250 million, we estimate Golden Nugget will end the year with leverage of 6.4x and coverage of 2.6x. Factoring consolidated cash of $167 million, we estimate net leverage at 6.2x. lEXhibit 4: Golden Nugget ($ 2015 (A) 2018 (A) LTA 2017(E) 2018 (5) Lake Charles 567 $82 $100 $103 $115 Biloxi 30 25 25 25 26 Downtown 61 70 79 82 86 Laughlin 11 12 II 12 13 Atlantic City 21 24 27 79 24 Restaurants 348 347 336 335 375 AQUAS EBITDA $637 $668 $678 5685 $840 Loss: Capital Expenditures 251 151 125 103 135 Less: Cash interest 162 168 250 245 250 Less: Cash taxes 8 13 25 15 25 Free Cash Flow $118 $227 $178 $143 $230 Total Debt 54.356 54.356 54.126 Cash 65 167 167 Leverage 7.6x 7Ax 6.4x Net Loam, 7.4x 7.2x 6.2x Coverage 2.3x 2.4x 2.13x Co.ne Cornowy ' ,*v$ n/Delglaw Sn Downside risks include increases in promotional activity in Golden Nugget's markets, the legalization of gaming in Texas, and a significant decline in the price of oil, which could have a negative impact on Texas and Louisiana. Moilv9en Garealy. We continue to expect Mohegan Gaming to further improve its balance sheet in preparation for the fierce competition that it will face from Resorts World Catskills, MGM Springfield and Wynn Boston Harbor. Further, we believe that the exposure by the company to South Korea is limited. as the $200 million investment has already been funded and some of the cash still sits on the balance sheet as restricted cash (-$148 million as of 04'17). On November 21. the company indicated the opening of their South Korean casino has been delayed again to late 2020 or early 2021. With this report, we are reaffirming our Buy rating on the MOHEGN 7.875% Senior Unsecured Notes 2024 ($103.2, 7.1% YTW, 491bps STVV), given our belief that these notes are attractive to investors, particularly those willing to tolerate higher risk in exchange for a higher yield. For FY'18, we are projecting Mohegan will generate Adjusted EBITDA of $375 million (+7.5% versus $349 million) on revenues of $1.39 billion (+0.5% versus $1.38 billion). Factoring capital expenditures of $194 million, cash interest of Page 90 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086649 CONFIDENTIAL SDNY_GM_00232833 EFTA01385365