3 January 2018 HY Corporate Credit HY Multi Sector,Media, Cable & Satellite $93 million, distributions to the tribe of $60 million, investments in affiliates of $4 million, and no proceeds from affiliates, we project free cash flow of $24 million in 2018. Using our projected total debt of $1.57 billion and cash interest of $93 million, we estimate Mohegan will end the year with leverage of 4.2x and coverage of 4.0x. Factoring non restricted cash of $89 million, we estimate net leverage at 4.0x. For FY'19, we are projecting Mohegan will generate Adjusted EBITDA of $290 million (-22.5% versus $375 million) on revenues of $1.20 billion (-13.5% versus $1.39 billion). Factoring capital expenditures of $105 million, cash interest of $88 million, distributions to the tribe of $60 million, investments in affiliates of $4 million, and proceeds from affiliates of $89 million, we project free cash flow of $122 million in 2019. Using our projected total debt of $1.40 billion and cash interest of $88 million, we estimate Mohegan will end the year with leverage of 4.8x and coverage of 3.3x. Factoring cash of $88 million, we estimate net leverage at 4.5x. For FY'20, we are projecting Mohegan will generate Adjusted EBITDA of $235 million (-19.0% versus $290 million) on revenues of $1.08 billion (-10.0% versus $1.20 billion). Factoring capital expenditures of $45 million, cash interest of $85 million, distributions to the tribe of $50 million, investments in affiliates of $4 million, and no proceeds from affiliates, we project free cash flow of $51 million in 2020. Using our projected total debt of $1.35 billion and cash interest of $85 million, we estimate Mohegan will end the year with leverage of 5.7x and coverage of 2.8x. Factoring consolidated cash of $88 million, we estimate net leverage at 5.3x. E hibit Mohegan Tribal Gaming (S Millions) 2016(A) 2017(N) 2018(E) 2019(E) 2020(E) Adjusted Ell/TDA $343 $349 $375 $290 3235 Less:Capital Expenditures $54 $100 $194 $105 $45 Less: Cash interest 133 94 93 88 85 Less: Distributions to the Tribe 53 60 60 60 50 Less: Investments in affiliates 8 4 4 4 4 Plus: Proceeds from affiliates 14 0 0 89 0 Free Ca* Flow $110 $R $24 $122 $51 Total Debt 31,710 $1.692 $1,574 $1.397 $1,345 Total Cash 290 237 143 88 88 Swage 5.0x 4.8x 4.2x 4.8x 5.7x Net Leverage• &7x 4.0x 4.0x 4.5x 5.3x Coverage 2.8x 3.7x 4.0x 3.3x 28x •Estkoasts restnar; aull &teal Canyon, Faro end f Sink Risk to our call includes a deterioration of gaming fundamentals and higher- than-expected cannibalization from the expansion of gaming at Massachusetts. Penn National Gaming Adjusting for cash settled stock costs and one-time acquisition expenses; Penn National was able to report a modest EBITDA beat (-$1 million) against our expectations owing to higher than expected revenues, partially offset by slightly lower-than-expected margins. While results were strong and management commentary regarding current trends was positive, we believe investor focus was on the announcement of several initiatives to increase profitability. While management provided limited color on specific measures, we do believe that the targets of the plan are achievable, especially if the company is able to drive incremental revenue of 2-3%. Deutsche Bank Securities Inc. Page 91 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086650 CONFIDENTIAL SDNY_GM_00232834 EFTA01385366