Simplified and Balanced Capital Structure Simplified capital structure with meaningfully less cash obligations and sufficient flexibility for future needs In May we: 1) exercised our option to convert the Series A and Series A-2 Redeemable Preferred Stock into Common Stock, increasing HGI’s market capitalization to ~$2.5 billion, and 2) exchanged $320.6 million of Senior Secured notes into $350.0 million of Senior Unsecured. 18 Pre-Conversion/Exchange Capital Structure Post-Conversion/Exchange Capital Structure 1. For illustrative purposes only; pre-conversion/exchange capital structure components shown as of March 31st, 2014 Senior Secured Debt Senior Unsecured Debt Participating Redeemable Preferred Stock Common Stock Senior Secured Debt Senior Unsecured Debt Common Stock