Seminole Hard Rock Entertainment Inc.

Overview Key strengths Key risks Established brand with a good reputation in the hotel, casino, and restaurant sectors. Operations in highly competitive markets. Hard Rock benefits from the support of its higher rated parent. Higher leverage as a result of the Mirage acquisition. Seminole Hard Rock has agreed to acquire the operations of The Mirage Hotel&Casino from MGM Resorts International for $1.075 billion, which we expect the Seminole Tribe of Florida will fund. Hard Rock anticipates the acquisition will close in December 2022, subject to approval of the Nevada Gaming Commission. Pro forma for the purchase price and incorporating our estimate of the operating lease obligation between Seminole Hard Rock and VICI Properties Inc. for the Mirage (which

...Seminole Hard Rock's ultimate parent supports Hard Rock's investment spending because of its strategic importance. Seminole Hard Rock has agreed to acquire the operations of The Mirage Hotel & Casino from MGM Resorts International for $1.075 billion, which we expect the Seminole Tribe of Florida will fund. Hard Rock anticipates the acquisition will close in December 2022, subject to approval of the Nevada Gaming Commission. Pro forma for the purchase price and incorporating our estimate of the operating lease obligation between Seminole Hard Rock and VICI Properties Inc. for the Mirage (which we treat as debt), we estimate Hard Rock is acquiring Mirage at a 14.5x-15.0x multiple of Mirage's 2019 EBITDAR. We believe Hard Rock remains strategically important as demonstrated by the Tribe's willingness to incur additional leverage at its gaming operations to fund distributions to Hard Rock entities for the acquisition of the Mirage and other development projects, provide a commitment of liquidity...

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