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Funding and Equity Contributions. Nov. 10, 2004. FLORIDA HIGH SPEED RAIL AUTHORITY. I. Global Rail Consortium, LLC II. Experience III. Technology : “KTX-R Rolling Stock” Funding Plan Closing. IV. FUNDING PLAN “ Funding Sources ”. Sources of Funds.
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Funding and Equity Contributions Nov. 10, 2004 FLORIDA HIGH SPEED RAIL AUTHORITY
I. Global Rail Consortium, LLC • II. Experience • III. Technology : “KTX-R Rolling Stock” • Funding Plan • Closing
IV. FUNDING PLAN “Funding Sources” Sources of Funds • State & Federal Participation • TIFIA : • Tax Credit Bonds : • Tax-Exempt Bonds : • Grants : • Equity Participation : $ 400 million $ 2 billion
IV. FUNDING PLAN “Funding Sources” Fund Appropriations for Project Infrastructure
IV. FUNDING PLAN “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 • Member Equity Contributions • GRC Equity Contribution : 250 • Equity by Partners : 150 • Total Equity Contributions : 400 Grand Total - All Equity : 511
IV. FUNDING PLAN “Equity Contribution” What Does Equity Do? • 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 PLAN “Equity Contribution” What Does Equity Do? • With Equity Investment in Project ($400 million) • $ 26 Million / Year savings • $ 780 Million over life of Bonds Assumptions: 5% interest rate 30 year bonds
IV. FUNDING PLAN “Amortization” How is Project & TIFIA Debt Retired? • 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
V. CLOSING GRC’s Commitment • Bring High Speed Rail to Florida • Private Sector Participation • State Contribution Fixed • State Risk Mitigated