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GLOBAL RAIL CONSORTIUM, LLC
Nov. 10, 2004
Funding and Equity Contributions
FLORIDA HIGH SPEED RAIL AUTHORITY
GLOBAL RAIL CONSORTIUM, LLC
I. Global Rail Consortium, LLC
II. Experience
III. Technology : “KTX-R Rolling Stock”
IV. Funding Plan
V.V. ClosingClosing
GLOBAL RAIL CONSORTIUM, LLC
State & Federal Participation
• TIFIA :• Tax Credit Bonds : • Tax-Exempt Bonds :• Grants :
Equity Participation : $ 400 million
IV. FUNDING PLANIV. FUNDING PLAN “ “Funding Sources”Funding Sources”
Sources of Funds
$ 2 billion
GLOBAL RAIL CONSORTIUM, LLC
Sources of Funds Amount
($ millions)
GRC / Partner Equity
400
Grants 0
Tax-Exempt ProjectRevenue Bonds
1,200
TIFIA Loans 800
Project Fund Interest
19
Total 2,419
Uses of FundsAmount
($ millions)
Project Equipment Fund 0
Project Infrastructure Fund
2,369
Capitalized Interest Fund 0
Debt Service Reserve Fund
0
Costs of Issuance 50
Total 2,419
Fund Appropriations for Project Infrastructure
IV. FUNDING PLANIV. FUNDING PLAN “ “Funding Sources”Funding Sources”
GLOBAL RAIL CONSORTIUM, LLC
IV. FUNDING PLANIV. FUNDING PLAN “ “Equity Contribution”Equity Contribution”
Sweat Equity ($ millions)
• Investment in Project Development prior to Selection : 6
• Project Development Investment prior to Financial Close : 5
• Project Revenue Bonds Costs of Issuance : 30
• Investment in TIFIA Loans Costs of Issuance : 20
• Operational Cash Guarantee : 50
Total Sweat / Soft Equity : 111
Grand Total - All Equity : 511
Member Equity Contributions
• GRC Equity Contribution : 250
• Equity by Partners : 150
Total Equity Contributions : 400
GLOBAL RAIL CONSORTIUM, LLC
• Reduces amount of debt required for the Project
• Minimizes Risk to the State of Florida
• Total equity invested equals 21% of total project cost ($511 / $2,400)
• Equity participants share the financial risk(s) of the project
• Emphasizes and Enhances GRC’s overall commitment to the project and the public / private partnership
• Puts equity investment at risk, dependent upon financial success, with repayment after operating costs and debt service
IV. FUNDING PLANIV. FUNDING PLAN “ “Equity Contribution”Equity Contribution”
What Does Equity Do?
GLOBAL RAIL CONSORTIUM, LLC
With Equity Investment in Project ($400 million)
• $ 26 Million / Year savings• $ 780 Million over life of Bonds
Assumptions: 5% interest rate 30 year bonds
What Does Equity Do?
IV. FUNDING PLANIV. FUNDING PLAN “ “Equity Contribution”Equity Contribution”
GLOBAL RAIL CONSORTIUM, LLC
• Project Bonds are retired by State of Florida participation (Fixed at $75 million / year)
• Balance of debt is serviced from fare box
• GRC equity participation reduces debt and enhances overall project success
• GRC pro forma financial statement shows sufficient revenues to amortize TIFIA debt
IV. FUNDING PLANIV. FUNDING PLAN “ “Amortization”Amortization”
How is Project & TIFIA Debt Retired?
GLOBAL RAIL CONSORTIUM, LLC
• Bring High Speed Rail to Florida
• Private Sector Participation
• State Contribution Fixed
• State Risk Mitigated
GRC’s Commitment
V. CLOSING