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UC Budget Conference October 22, 2007

UC Budget Conference October 22, 2007. UCOP External Finance. Debt Capacity Update. No more debt targets. Updated debt capacity presented at May 2007 Regents $9-$11 billion assuming GRB at AA and LPRB at A $6-8 billion assuming GRB and LPRB at AA

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UC Budget Conference October 22, 2007

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  1. UC Budget Conference October 22, 2007 UCOP External Finance

  2. Debt Capacity Update • No more debt targets. • Updated debt capacity presented at May 2007 Regents • $9-$11 billion assuming GRB at AA and LPRB at A • $6-8 billion assuming GRB and LPRB at AA • Five year horizon, assumes that SPWB doesn’t count against debt UC capacity • Focus on ability to pay • New fund sources as source of repayment: • Education Fund

  3. Third Party Update • On credit, on balance sheet - 100% of debt • Off credit, on balance sheet – see below as indirect debt • Off credit, off balance sheet - none • Debt capacity scoring for third party indirect debt: • 50% of debt counted during construction period • 20% of debt ongoing if the project is meeting covenants • 100% of debt if project does not meet covenants for two consecutive years

  4. Financing Structures • General Revenue Bonds • Limited Project Bonds • Medical Center Pooled Bonds • Third Party with Financing Trust Structure • Private Placements • Capital Leases • Commercial Paper • Bank Loans

  5. UC Debt Outstanding*as of October 10, 2007 (in millions) 4.68%** *Excludes State Lease Revenue Bonds and campus-originated leases. ** Weighted average rate calculated with swap for auction rate bonds and variable rate notes.

  6. Projected Long Term UC Debt by Campus* ($8.2 Billion) In $ Millions * Outstanding long term debt and long term debt to be issued for approved projects through September 2007. Excludes CP and bank loans. University of California

  7. Projected Long Term UC Debt by Repayment Source* ($8.2 Billion) In $ Millions * Outstanding long term debt and long term debt to be issued for approved projects through September 2007. Excludes CP and bank loans. University of California

  8. Bond Ratings AA Aa1

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