presentation Nov 04

							  GLOBAL RAIL CONSORTIUM, LLC




    Funding and Equity
      Contributions

           Nov. 10, 2004


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. Closing
IV. FUNDING PLAN              GLOBAL RAIL
     “Funding Sources”      CONSORTIUM, LLC


                Sources of Funds

 State & Federal Participation

     •   TIFIA              :
     •   Tax Credit Bonds   :
                                  $ 2 billion
     •   Tax-Exempt Bonds   :
     •   Grants             :

 Equity Participation      :   $ 400 million
IV. FUNDING PLAN                         GLOBAL RAIL
     “Funding Sources”                 CONSORTIUM, LLC


 Fund Appropriations for Project Infrastructure
                       Amount                                     Amount
 Sources of Funds                        Uses of Funds
                     ($ millions)                               ($ millions)
  GRC / Partner                     Project Equipment Fund           0
                         400
    Equity
                                     Project Infrastructure
                                                                   2,369
     Grants               0                   Fund
Tax-Exempt Project                  Capitalized Interest Fund        0
                         1,200
  Revenue Bonds
                                     Debt Service Reserve
   TIFIA Loans           800                                         0
                                            Fund
   Project Fund
                          19           Costs of Issuance            50
     Interest
      Total              2,419                Total                2,419
IV. FUNDING PLAN                              GLOBAL RAIL
       “Equity Contribution”                CONSORTIUM, LLC

     Sweat Equity ($ millions)               Member Equity
                                             Contributions
• Investment in Project
  Development prior to Selection      : 6    • GRC Equity Contribution   : 250

• Project Development                        • Equity by Partners        : 150
  Investment prior to Financial Close : 5
                                              Total Equity Contributions : 400
• Project Revenue Bonds
  Costs of Issuance                  : 30

• Investment in TIFIA Loans
  Costs of Issuance                  : 20    Grand Total - All Equity : 511
• Operational Cash Guarantee         : 50

 Total Sweat / Soft Equity          : 111
IV. FUNDING PLAN                           GLOBAL RAIL
     “Equity Contribution”               CONSORTIUM, LLC

                     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                              GLOBAL RAIL
         “Equity Contribution”              CONSORTIUM, LLC



                      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                GLOBAL RAIL
         “Amortization”           CONSORTIUM, LLC


      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
                            GLOBAL RAIL
V. CLOSING                CONSORTIUM, LLC



       GRC’s Commitment

 •   Bring High Speed Rail to Florida

 •   Private Sector Participation

 •   State Contribution      Fixed

 •   State Risk      Mitigated