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