Rutgers University General Obligation Refunding Bonds 2016 Series M - PowerPoint PPT Presentation

Rutgers Post Integration_201404 v5.ppt\16 APR 2014\2:49 PM\1 Rutgers University General Obligation Refunding Bonds 2016 Series M (Tax Exempt) Investor Presentation February 26, 2016 J. Michael Gower Executive Vice President for Finance and Administration and University Treasurer Richard Aks Vice President for Finance & Associate Treasurer

This document and any other materials accompanying this document (collectively, the “Materials”) are provided for your information. By accepting any Materials, the recipient acknowledges and agrees to the matters set forth below. The Materials are not part of the preliminary official statement or the final official statement as those terms are defined in SEC rule 15c2-12, and are qualified in all respects by reference to the Preliminary Official Statement. Prospective purchasers of the General Obligation Refunding Bonds 2016 Series M should rely only on the Preliminary Official Statement, and not the Materials, in making an investment decision. The Materials and statements contained in this presentation do not constitute an offer to sell or a solicitation of any offer to buy any securities of Rutgers University to any person in any jurisdiction, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. To the extent there are conflicts between statements made in the Preliminary Official Statement and this presentation, the information contained in the Preliminary Official Statement should be deemed more reliable. The Materials are not intended as investment advice or as a confirmation of any transaction. Externally sourced information contained in the Materials has been obtained or derived from sources believed to be reliable, but Wells Fargo Securities makes no representation or warranty, express or implied, with respect thereto, and does not represent or guarantee that such information is accurate or complete. Such information is subject to change without notice and Wells Fargo Securities accepts no responsibility to update or keep it current. Wells Fargo Securities does not assume or accept any liability for any loss which may result from reliance thereon. Wells Fargo Securities and/or one or more of its affiliates may provide advice or may from time to time have proprietary positions in, or trade as principal in, any securities or other financial products that may be mentioned in the Materials, or in derivatives related thereto. Any opinions or estimates contained in the Materials represent the judgment of Rutgers at this time, and are subject to change without notice. The Materials are not intended to provide, and must not be relied on for, accounting, legal, regulatory, tax, business, financial or related advice or investment recommendations and does not constitute advice within the meaning of Section 15B of the Securities Exchange Act of 1934. No person providing the Materials is acting as fiduciary or advisor with respect to any transaction described or contemplated therein unless expressly agreed to in a written financial advisory or similar agreement. You must consult with your own advisors as to the legal, regulatory, tax, business, financial, investment and other aspects of the Materials. This presentation may contain statements that, to the extent they are not recitations of historical fact, may constitute “forward-looking statements.” In this respect, the words “estimate”, “project”, “anticipate,” “expect, “intend,” “believe” and similar expressions are intended to identify forward-looking statements. Any forward-looking statements made herein are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those that have been projected. Such risks and uncertainties which could affect the revenues and obligations of Rutgers include, among others, changes in economic conditions, mandates from other governments, reduced governmental allocations, and various other events, conditions and circumstances, many of which are beyond the control of [name of issuer]. Such forward- looking statements speak only as of the date of the Preliminary Official Statement of February 25, 2016. The Rutgers University disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any changes in the Rutgers University’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Given these uncertainties, readers are cautioned not to rely on forward-looking statements. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in the Materials is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Wells Fargo Securities is the trade name for certain securities-related capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, N.A., acting through its Municipal Products Group. .

Agenda • New Issue Summary • Recent Initiatives • Financial Information • Enrollment and Demand

Rutgers Investor Presentation 8.29.2014.ppt\01 SEP 2014\2:06 PM\5 New Issue Summary: GO Ref Bonds 2016 Series M 1 Exempt from Federal Income Tax and Certain New Jersey Taxes 1 Advance Refunding of Series 2009F Callable Maturities from 2020-2039 Amounts * Plan of Finance Par Amount Refunded with Tax-Exempt Fixed Rate Debt: $163.6 million Par Amount Refunded with Taxable Commercial Paper: $2.6 million Total Par Amount to be Refunded: $166.2 million Principal Maturities May 1, 2020 to May 1, 2039* Callable May 1, 2026* Call Provision Tuesday, March 1: Price Series 2016 Series M Bonds* Schedule Thursday, March 31: Close Series 2016 Series M Transaction* Aa3 (negative) from Moody’s/ A+ (stable) from S&P/ AA- (stable) from Fitch Ratings Covenant – The University shall at all times charge and collect tuition, fees, rents, charges and other revenues which, together with other legally available funds, shall be sufficient to make all payments as the same Payment of become due of principal, interest and Sinking Fund Installments with respect to any and all Obligations Indebtedness of the University and to meet all other obligations of the University. Wells Fargo Securities (Senior); Morgan Stanley (Co-Senior); Underwriters BofA Merrill Lynch, Citigroup, Janney Montgomery Scott, Raymond James (Co-Managers) Advisor Prager & Co., LLC * Preliminary and subject to change; when, as, and if issued 1 Upon issuance of the bonds, Bond Counsel is expected to deliver an opinion that interest on the bonds is excludable from gross income for Federal and New Jersey state income tax purposes, and is not includable for purposes of computing the federal alternative minimum tax. The form of Bond Counsel’s opinion is available in the Preliminary Official Statement. Before purchasing bonds, you should consult with your tax advisor concerning your particular tax situation 1

Rutgers Investor Presentation 8.29.2014.ppt\01 SEP 2014\2:06 PM\5 Recent Initiatives • Rutgers is celebrating its 250 th anniversary in November 2016 250 th Anniversary � • The year-long celebration highlights Rutgers’ tradition of revolutionary teaching, research and service and is embodied in our logo: RevolUtionary • The University completed a comprehensive strategic plan in 2014 combining an assessment Strategic and � of Rutgers’ institutional strengths with a vision of the opportunities for improvement to create Master Plans a five-year roadmap for excellence • In 2015 the University completed its Physical Master Plan, Rutgers 2030, which envisions development over a 15-year time frame • Strategic plans have been completed for each of the four academic units and master plans for three of the four units Rutgers • RBHS was created following the 2013 integration with the University of Medicine and � Dentistry of New Jersey (UMDNJ) Biomedical and • RBHS is the umbrella organization for the UMDNJ schools and clinical units, several pre- Health Sciences existing Rutgers units with health-related missions, and two research units that historically (RBHS) were jointly operated by Rutgers and UMDNJ • A key RBHS initiative is the creation of a health care faculty practice plan that will combine service delivery at 12 separate schools, practices, divisions, and institutes into an integrated statewide practice that is aiming to be the market leader in delivering healthcare throughout the region • The Honors College of Rutgers opened in Fall 2015 to create a living-learning community Honors College � that supports academic achievement and encourages engagement in campus life and in of Rutgers larger communities. • The inaugural class is currently 530 students with an average SAT score of 2160 out of 2400 • 19% of Honors College students are from out-of-state 2