ML&P Sale Transaction Proceeds, the Sequel 11/12/19 Projected - PowerPoint PPT Presentation

ML&P Sale – Transaction Proceeds, the Sequel 11/12/19

Projected Transaction Proceeds Up Front Payment ($ 755,273,577.00 ) + Payments in Lieu of Tax (50 years) ($166,800,000.00) + Eklutna Power Purchase (35 years) ($75,000,000.00) ____________________________ = Total Transaction Proceeds ($997,073,577.00)

Projected Up Front Payment $757,800,000.00 -- (Accrued Leave Liability) ($2,526,423.00) -- (Net Book Value of Excluded Assets) ($00.00) -- (Difference between $715M and book value) ($5,000,000.00) _________________________ = Up Front Payment ($750,273,577.00)

Remaining ML&P Liabilities • Transaction Expenses ($7.9M) UP FRONT PAYMENT • SAP Keybank Notes ($8M) • IBEW Leave Payout UNRESTRICTED CASH (<$1.6M) • PERS Liability ($3M + $1M/year X 20) MATANUSKA ELECTRIC • Eklutna Capital and POWER PURCHASE Operating Costs PAYMENTS (~$1M)

Where Can the Money Go? PILT Payments (50 years) Annual Budget (Replaces MUSA) Payment of ML&P Debt and Expenses Up Front Payment ~$234 Million Remains MOA Debt MOA Trust PPA Payments (35 Years) $55 Million (over time, net expenses)

$234 Million Deposit Disbursement – Earnings – 6% 4.25% $234,000,000 $9,945,000 $14,040,000 Year 1 Year 2 $238,095,000 $10,119,038 $14,285,700 Year 3 $242,261,663 $10,296,121 $14,535,700 Year 4 $246,501,242 $10,476,303 $14,790,074 Year 5 $250,815,013 $10,659,638 $15,048,901 Year 10 $273,543,008 $11,625,578 $16,412,580 Year 15 $293,330,536 $12,460,981 $17,899,832 Year 20 $325,364,224 $13,827,980 $19,521,853 Year 25 $354,847,612 $15,081,024 $21,290,857 Year 26 $361,057,445

$200 Million Deposit Disbursement – Earnings – 6% 4.25% $200,000,000 $8,500,000 $12,000,000 Year 1 Year 2 $203,500,000 $8,648,750 $12,210,000 Year 3 $207,061,250 $8,800,103 $12,423,675 Year 4 $210,684,822 $8,954,105 $12,641,089 Year 5 $214,371,806 $9,110,802 $12,862,308 Year 10 $233,797,443 $9,936,391 $14,027,847 Year 15 $254,983,364 $10,836,793 $15,299,002 Year 20 $278,089,080 $11,818,786 $16,685,345 Year 25 $303,288,557 $12,889,764 $18,197,313 Year 26 $308,596,107

$234 Million Deposit Disbursement – Earnings – 6% 4.25% Year 1 $234,000,000 $9,945,000 $14,040,000 Year 25 $354,847,612 $15,081,024 $21,290,857 $200 Million Deposit Disbursement – Earnings – 6% 4.25% Year 1 $200,000,000 $8,500,000 $12,000,000 Year 25 $303,288,557 $12,889,764 $18,197,313