EFTA Document EFTA01385358

3 January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite stream, (2) ability to close acquisitions without necessarily increasing leverage, (3) free cash flow generation and de-levering starting in 2017, and (4) strong liquidity and limited maturities. For 2017, we project GLPI to generate adjusted EBITDA of $886 million (+23.0% versus 8721 million) on revenues of $973 million (+17.5% versus $828 million). Factoring the impact from S4 million of capital expenditures, $202 million of interest expense, $529 million of dividend payments, $10 million of cash taxes, $139 million in proceeds from share issuances and $13 million in proceeds from dispositions, we estimate free cash flow of $211 million. Using our forecast of $4.50 billion of debt and $44 million of cash, we estimate that GLPI will end 2017 with gross leverage of 5.1x and net leverage of 5.0x. For 2018, we project GLPI to generate adjusted EBITDA of $895 million (+1.0% versus $886 million) on revenues of $994 million (+2.0% versus $973 million). Factoring the impact from $4 million of capital expenditures, $199 million of interest expense, $548 million of dividend payments and $10 million of cash taxes, we estimate free cash flow of $134 million. Using our forecast of $4.36 billion of debt and $44 million of net available cash, we estimate that GLPI will end 2018 with gross leverage of 4.9x and net leverage of 4.8x. [Exhibit 2: Gaming and Leisure hone] tics (3 25150) 2016(A) LT111 20171E) 2018(El Adjusted EISMA $440 $721 $883 3885 $885 Lees: Capital Expenditures 19 3 4 3 4 Less: Cash interest 110 155 201 202 199 Less: Cash taxes 10 7 12 10 10 Less: Dividends 252 428 520 529 548 Less: Acquisitions 0 3268 84 83 0 Plus: Share Issuance 0 871 139 139 0 Plus: Dispositions 5 3 14 13 0 An Cosh new $54 02200) 5215 5211 5134 Total Debt $2541 $4.716 $4.491 $4.497 $4.363 Cash 42 37 44 44 44 Leverage Sax 8.5x LI x 5.1x 4.Sx Net leverage 5.7x 8.5x 5.0x 5.0x 4.8x Coverage 4.0x 4.7x 4.4x 4.4x 4.5x San. Caaan, FAN. .n3 Cane?.. "it Downside risks include deterioration in regional gaming fundamentals, which may lead to lower free cash flow generation. International Gaining Technology IGT reported a nice 03'17 beat as traction across several product lines and discipline around costs appears to be gaining steam. Key positives that we identified during the quarter include: (1) strong same-store lottery revenue of 9.4% in North America; (2) signs of stabilization in the UK lottery; (3) the California contract renewal; (4) positive feedback from G2E; and (5) somewhat favorable conditions for the extension of the Italian Scratch & Win lottery contract (no tender process & no changes on the terms of existing contract). We continue to expect the company will report strong 04'17 results as lottery headwinds are lapped, new slot content hits floors, and certain domestic operators ramp up their capital spend. Deutsche Bank Securities Inc. Page 83 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086642 CONFIDENTIAL SDNY_GM_00232826 EFTA01385358