EX-99.(C)(7) 8 ea021236501ex99-cvii_ballys.htm DISCUSSION MATERIALS, DATED MAY 23, 2024, OF MACQUARIE CAPITAL (USA) INC. TO THE SPECIAL COMMITTEE

Exhibit (c)(vii)

 

Strictly confidential | © Macquarie Group Limited 1 Project Epsilon Special Committee Meeting Macquarie Capital May 2024

 

 

Standard General made their initial investment in Intralot in February 2023 through a Private Investment in Public Equity Transaction (PIPE) and continued to purchase shares through the remainder of 2023 • CQ Lottery LLC, under wholly - owned unrestricted subsidiary of Queen Casino & Entertainment (or the “QC&E”), owns 162.3mm shares • CQ Lottery purchased 122.2mm shares in February 2023 • CQ Lottery obtained an additional 40.1mm shares between February 2023 and December 2023 • CQ Lottery LLC is the lender under the loan agreement and would receive 34.3mm shares as repayment of the loan provided to Socratis Kokkalis, Chairman & CEO of Intralot • QC&E has not been required to obtain any lottery licenses in connection with its investment in Intralot • Soo Kim and Mira Mircheva had to become licensed in Victoria, Australia in connection to their roles as directors of Intralot Financial Profile Current Capitalization: As of 12/31/2023 Debt 0.0% $0.0 $55.2 Revolver 54.2% 256.4 552.3 Term Loan B 0.5% 2.3 2.3 Supplemental Indenture 45.3% 214.6 254.1 Bank Loan Intralot - Current Capitalization FYE 12/31/23 ($ in millions) Principal / Share Count Outstanding / Share Value % of Debt / Equity % of EV xEBITDA Cash $123.6 $123.6 (11.7%) 0.9x Intralot Overview $457 $434 $402 $384 $411 $122 $136 $143 $150 3.3x 44.9% 100.0% $473.3 Total Debt $165 $349.7 Net Debt Equity 26.9% $189.3 162.3 Standard General Ownership (1) 73.1% 515.4 441.8 Remaining Ownership (2) 4.9x 66.8% 100.0% $704.7 604.1 Total Equity 7.4x 100.0% $1,054.4 Total Enterprise Value $143.0 2023A Adj. EBITDA 2021A 2022A 2023A 2024E 2025E Revenue Adj. EBITDA Sources: Company filings and announcements, Citizens and FactSet. (1) Does not reflect the shares Standard General would receive upon repayment of the loan to Socratis Kokkalis. (2) Represents the registered number of shares outstanding as of 12/31/2023 less Standard General Ownership. Strictly confidential | © Macquarie Group Limited 2

 

 

Strictly confidential | © Macquarie Group Limited 3 A APPENDIX Supplemental Information

 

 

Sources: Public filings, equity research, FactSet as of 4/19/2024 and 5/22/2024. Notes: Metrics other than 2024E and 2025E lease adjusted EV / EBITDAR shown for informational reference only. Financials converted to USD using FX spot rate as of 4/19/2024 and 5/22/2024. Market cap calculated using basic shares outstanding as of 4/19/2024 and 5/22/2024 adjusted for equity incentive plans and in - the money equity options outstanding as of 12/31/2023. Net debt, lease liabilities, financing obligations, non - controlling interest, equity investments, and cash and cash equivalents as of 12/31/2023. (1) Reflects Bally’s unaffected stock price and market cap as of 3/8/2024. Multiples based on consensus estimates. Strictly confidential | © Macquarie Group Limited 4 Publicly Traded Comp Update Trading Comp Update Current As of May 22, 2024 2024E 2025E 7.5x 8.2x 6.4x 6.5x 7.7x 8.1x 11.0x 12.7x 6.4x 6.8x 6.8x 7.0x 7.3x 9.8x 7.1x 7.6x 7.6x 8.5x 4.6x 5.2x 4.3x 4.7x 7.4x 7.9x 13.6x 17.2x 4.4x 5.1x 5.6x 7.1x 5.1x 6.7x 6.2x 7.9x Delta At Special Committee Meeting As of April 19, 2024 ($ in millions, except per share data) 2024E 2025E 2024E 2025E Company -- x -- x 8.2x 7.5x Bally's Corporation (Unaffected) (1) (0.6x) (0.6x) 7.1x 7.0x US Regional Gaming Operators - Primary Boyd Gaming Corp (0.1x) (0.1x) 1.1x 0.9x (0.8x) (0.8x) (0.3x) (0.3x) 0.8x 0.3x 8.3x 7.8x 11.6x 10.1x 7.6x 7.2x 7.3x 7.1x 9.0x 7.0x Caesars Entertainment Inc Churchill Downs, Inc Golden Entertainment Inc Monarch Casino & Resorts, Inc Penn Entertainment Inc (0.3x) (0.1x) 0.0x (0.1x) 7.9x 7.2x 8.5x 7.7x Median Mean 0.1x 0.1x 5.1x 4.5x International Interactive - Primary 888 Holdings 0.1x 0.1x (0.6x) (0.6x) 1.4x 1.1x (0.2x) (0.2x) 2.7x 1.5x 4.7x 4.2x 8.5x 8.0x 15.8x 12.5x 5.3x 4.6x 4.4x 4.0x Betsson AB Entain plc Flutter Entertainment plc Lottomatica Group Super Group Limited 1.0x 0.5x 0.6x 0.3x 5.2x 4.6x 7.3x 6.3x Median Mean

 

 

Strictly confidential | © Macquarie Group Limited 5