Vici Properties Inc. · NYSE:VICI
Vici Properties — Merger or Acquisition (June 2018)
13 slides from Vici Properties's merger presentation, Jun 19, 2018
Slide 1: Margaritaville Resort Casino Transaction Overview
MARGARITAVILLE RESORT CASINO TRANSACTION OVERVIEW JUNE 19, 2018
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and sim
Slide 3: Strategic Rationale and Transaction Benefits
STRATEGIC RATIONALE AND TRANSACTION BENEFITS Objectives Immediate Tenant Provides immediate tenant diversification with addition of Penn National Gaming to VICI's portfolio Diversification Penn has a 46 year history and is a leading national gaming operator with 40 properties in 18 jurisdictions
Slide 4: Transaction Overview – Tenant Diversification
TRANSACTION OVERVIEW – TENANT DIVERSIFICATION Margaritaville Acquisition Penn National Partnership $376 million ($261 million PropCo / Subsidiary of Purchase Price Tenant $115 million OpCo) Penn National Gaming 1 LTM Adj. EBITDARM $44 million Guarantor Parent-level by Penn National Gaming2 Rent Cove
Slide 5: Margaritaville Resort Casino – Premier Venue in Northern Louisiana
MARGARITAVILLE RESORT CASINO – PREMIER VENUE FOR OVERALL CASINO EXPERIENCE IN NORTHERN LOUISIANA Property Overview Financial Highlights Attractive Asset #2 performing property in the market based on gross gaming revenues2 2015 – 2017 “Best Overall Property” in Mid- South1 Option to purchase 30
Slide 6: Bossier City Market Fundamentals Are Resilient
BOSSIER CITY MARKET FUNDAMENTALS ARE RESILIENT S T E A D I LY G R O W I N G S H A R E O F M A R K E T I N N O R T H E R N L O U I S I A N A Bossier City / Shreveport GGR Market Highlights Significant size of Bossier City / Shreveport market with ~4 hours and ~3 hours driving distance from Housto
Slide 7: Bossier City / Shreveport Competitive Landscape
BOSSIER CITY / SHREVEPORT COMPETITIVE LANDSCAPE Bossier City Shreveport Property Year Opened 2013 1996 1994 1994 1974 / 20034 2000 1994 Bossier Operator Casino Venture Casino Space (sq. ft.)1 26,500 25,635 29,921 28,275 9,694 28,190 29,285 Casino Levels 1 3 3 3 1 3 3 Slot Machines1 1,217 997 859 1,1
Slide 8: Tenant Overview – Penn National
TENANT OVERVIEW – PENN NATIONAL Company Overview Portfolio1 Penn National Gaming, Inc. (NASDAQ: PENN) owns, operates, or has ownership interests in gaming and racing facilities across the U.S. and Canada with a focus on casino entertainment Largest US regional gaming operator with 40 properties in
Slide 9: Lease Agreement Structure
Corporate Rent Coverage Ratio LEASE AGREEMENT STRUCTURE expected to be [13.X]x2 Rent Structure Other Key Terms Annual Rent Penn will provide a parent Components of Rent Escalators and Resets guarantee ($mm) Set at 2% of LTM net revenues Lease will be triple-net with initial Land Base Rent $3.0
Slide 10: Appendix
: A APPENDIX
Slide 11: Reconciliation from GAAP to Non-GAAP: Penn National Adjusted EBITDA
Corporate Rent Coverage Ratio RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES: expected to be [13.X]x2 CALCULATION OF HISTORICAL ADJUSTED EBITDA OF PENN NATIONAL Penn National Gaming Year Ended December 31, ($ in millions) 2013 2014 2015 2016 2017 Net income/(loss) $(581.3) $(183.8) $0.7 $10
Slide 12: Reconciliation from GAAP to Non-GAAP: Margaritaville EBITDARM
Corporate Rent Coverage Ratio RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES: expected to be [13.X]x2 CALCULATION OF HISTORICAL EBITDARM OF MARGARITAVILLE Margaritaville Resort Casino Twelve Months Ended ($ in millions) March 31, 2018 Net income/(loss) $21.2 Interest expense, net 5.9 Loss o
Slide 13: Margaritaville – Premier Property Addition
Corporate Rent Coverage Ratio MARGARITAVILLE – PREMIER PROPERTY ADDITION expected to be [13.X]x2 13