Company Background
Transaction Details
SGC’s Role
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Our client is a Canadian private
equity firm specializing in
originating and managing
investments in infrastructure
and real estate.
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The Ontario Lottery and
Gaming Commission issued an
RFP to bid on the
modernization of the East
Gaming Bundle
Our client partnered with a
casino operator to bid on the
three casino bundle in eastern
Ontario
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Performed a deep dive analysis
of the operating partner’s
budget; identified cost savings
Prepared analysis of
construction budgets of
comparable regional casinos
and identified lower cost
development alternatives
Performed an analysis of
management contracts
resulting in a better
management contract for the
client
Produced a market sizing study
that was used to determine
appropriate slot and table
count; resulting in a higher IRR
to the client
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Company Background
Transaction Details
SGC’s Role
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The City of Atlantic City is the
second oldest gaming market
in the U.S. with annual gross
gaming revenue over $2.6
billion
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In 2013, Borgata Hotel Casino
and Spa filed an appeal of its
real estate taxes for the 2009
and 2010 fiscal years
The tax court ruled in favor of
Borgata, valuing the property
at $875M, compared with the
$2.3 assessed value, and
awarded the company a $48M
refund
The property filed a
subsequent appeal for the
2011-2013 fiscal years
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Prepared a 130-page expert
report on the Atlantic City
gaming market, Borgata
relative to the competition and
valuation of casinos
Performed an in-depth
valuation analysis of Borgata
using multiple valuation
methodologies
Drafted a critical review of the
analyses prepared by experts
for Borgata
Borgata settled the tax dispute
at a valuation of $900M, up
from the 2009-10 valuation
despite continued declines in
operating performance
2
Company Background
Transaction Details
SGC’s Role
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GMB Racing is a New Orleansbased horse training and racing
stable
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Churchill Downs had engaged
an investment bank to sell the
company’s Fair Grounds Race
Course & Slots in New Orleans,
LA
GMB Racing was an interested
party in acquiring Fair Grounds
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SGC acted as M& A advisor to
GMB Racing
SGC prepared a financial
analysis of Fair Grounds and
performed in-market due
diligence on the property and
competition
SGC structured a joint venture
with an undisclosed gaming
company to operate the casino
GMB would operate the
racetrack
SGC advised the client on a fair
value for the asset and
prepared a term sheet to
acquire the asset
3
Company Background
Transaction Details
SGC’s Role
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Station Casinos owns and
operates locals-oriented Las
Vegas casinos
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Station Casinos filed Chapter
11 in July 2009
SGC Advised a group of 13
banks, hedge funds and
institutional investors on
valuation relative to their
collective $200M position in
Station Casinos Senior Debt in
restructuring
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Field work based review of
Station’s properties, JV’s and
land holdings to assess
valuation
Created independent
projections for each property
without assistance from
property management
Valued all other assets based
on market comps or
independently created
projections
Developed valuation
arguments for counsel
regarding IP value and
propco/opco considerations.
Increased settlement for
investor group by 20%
4
Company Background
Transaction Details
SGC’s Role
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Harbinger Capital Partners is a
private investment firm
specializing in event/distressed
strategies.
Harbinger seeks investments
that typically fall into the
following four categories: 1)
event; 2)
distressed/bankruptcy; 3)
value; or 4) corporate shorts
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Tropicana Entertainment filed
Chapter 11 in May 2008
SGC principals’ advised
Harbinger Capital on its large
investment position in
Tropicana Entertainment
subordinated debt
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Performed in-market due
diligence review of entire asset
portfolio
 Competitive position
 Capex needs
 Operational efficiency
 Market outlook
Created projections for each
asset to build company model
Assisted in restructuring
strategy and negotiations
5
Company Background
Transaction Details
SGC’s Role
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Our client was a US hedge fund
with large positions in high
yield securities of Peninsula
Gaming and French Lick
Springs Resort
Our client was seeking detailed
valuation analysis of the
individual casino properties
secured by the securities
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Performed in-market due
diligence review of each asset
 Competitive position
 Capex needs
 Operational efficiency
 Market outlook
Created projections for each
asset to build company models
Reviewed and summarized
bond indentures to assess
valuation impact
Established asset and company
valuations relative to debt
Concluded on valuation of
bond investments that led to
successful investment
decisions
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