ND ND 5/1/17 Eldorado Resorts Isle of Capri Casino 1,700 8.8x 5/1/17 Gaming & Leisure Prop Bally's & Resorts Tunica (RE) 83 9.2x 5/1/17 Penn National Bally's & Resorts Tunica (OPI 44 3.7x 3/31/17 Seminole Hard Rock' Trump Taj Mahal 65x 6.6x 3/13/17 Casino Queen Lady Luck Marquette 40 7

otentially benefit from scale and multi- asset corporations and REITs expressing willingness to grow via acquisitions. We believe that the merger of Penn National and Pinnacle Entertainment could be the first big transaction to be announced next year. In our view, a combination of both entities has the potent

ane &IS In the HIGHER YIELD FOR HIGHER leverage category, we recommend Bova Gamina. Eldorado Resorts. Eyed Holdinas Golden Nuaaet, Mohegan Gaming, Penn National. Red Rock Resorts (Station Casinos) and Wynn Resorts. Exhibit 3: Higher Yield For Higher t. evelage Recommenciatione Security Rating MYSIS&P Princ

Senior Notes 2027 ($103.8, 5.0% YTW, 261bps) given our belief that the notes are attractive on a relative value basis. For 2017, we are projecting Penn National will generate Adjusted EBITDA of $868 million (+3.0% versus S844 million) on revenues of $3.15 billion (+4.0% versus $3.03 billion). Factoring capi

tion 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