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out to the insurers to solicit credit approvals and insurance bids. The decision to use bond insurance will be
<br />made closer to the time of pricing and be subject to investor demand.
<br />Sample Scenarios. For illustrative purposes we ran two scenarios: (1) 50% UAL funding, and (2) 90% UAL funding
<br />— both assuming market yields as of March 9, 2021. Appendix F includes our comprehensive model outputs for
<br />each scenario, but we want to highlight that Scenario 2 (90% UAL Payment) produces a lower TIC than Scenario
<br />1 (50% UAL Payment) due to the inclusion of an index eligible term bond and slightly lower average life. Further,
<br />BofA does not see a material difference in "probability of success" metrics (discussed below) between either
<br />scenario.
<br />Miscellaneous UAL
<br />Funded
<br />• No Prepayment
<br />Safety UAL Funded
<br />• Full Prepayment of FY22 UAL by 8/1/21
<br />• Prepayment of Selected Bases on Closing Date to
<br />reduce amortization payments beginning FY23
<br />Bond Structure
<br />• Taxable Callable Fixed Rate Bonds
<br />• Principal due 6/1; Interest due 6/1 and 12/1
<br />• Par Call Date: 6/1/2031
<br />• Serials 2022-2036
<br />• Term Bond 2037-2044
<br />• FY22-26 annual savings target of $10 million
<br />Par Amount
<br />$359,405,000
<br />Full Prepayment of FY22 UAL by 8/1/21
<br />Prepayment of Selected Bases on Closing Date to
<br />reduce amortization payments beginning FY23
<br />• Full Prepayment of FY22 UAL by 8/1/21
<br />• Full Prepayment on Closing Date of UAL balance as
<br />of 6/30/2022 for current amortization bases
<br />• Taxable Callable Fixed Rate Bonds
<br />• Principal due 6/1; Interest due 6/1 and 12/1
<br />• Par Call Date: 6/1/2031
<br />• Serials 2022-2035
<br />Index Eligible Term Bond 2036-2044
<br />• FY22-26 annual savings target of $20 million
<br />$649,230,000
<br />All -in TIC
<br />3.028%
<br />2.883%
<br />Average Life
<br />14.8 years
<br />13.2 years
<br />Cumulative Savings
<br />$184,523,000
<br />$316,816,000
<br />Financing PV Savings
<br />(% of Par)
<br />$152,826,000
<br />(42.5% of Par Amount)
<br />$264,693,000
<br />(40.8% of Par Amount)
<br />Actuarial PV Savings
<br />(% of Par)
<br />$122,178,000
<br />(34.0% of Par Amount)
<br />$210,434,000
<br />(32.4% of Par Amount)
<br />Scenario 1(50% UAL Payment)
<br />Sources & Uses ($000s)
<br />Miscellaneous Safety Total
<br />Sources: 80,000
<br />ParAmount - 359,405.000 359,405.000 70,000
<br />Premium/(Discount) - - -
<br />Other Sources 60,000
<br />Total Sources 359,405.000 359,405.000
<br />50,000
<br />Uses:
<br />40,000
<br />FY22 Prepayment
<br />- 29,101.640
<br />29,101.640
<br />POB Deposit
<br />- 328,682.392
<br />328,682.392
<br />30,000
<br />Underwriter's Discount
<br />- 808.661
<br />808.661
<br />20,000
<br />Costs of Issuance
<br />- 808.661
<br />808.661
<br />Additional Proceeds
<br />3.646
<br />3.646
<br />10,000
<br />Total Uses
<br />359,405.000
<br />359,405.000
<br />Average life 14.8years 14.8 years
<br />TIC 3.009% 3.009%
<br />All -in TIC 3.028% 3.028%
<br />Amortization Base
<br />Year
<br />Balances UAL Refunded
<br />UAL Remaining
<br />Fresh Start
<br />2006
<br />(1,483.984) -
<br />(1,483.984)
<br />Benefit Change
<br />2007
<br />25,025.094 -
<br />25,025.094
<br />Benefit Change
<br />2007
<br />119.441 -
<br />119.441
<br />Assumption Change
<br />2009
<br />27,257.475 -
<br />27,257.475
<br />Special (Gain)/Loss
<br />2009
<br />29,176.611 -
<br />29,176.611
<br />Special (Gain)/Loss
<br />2010
<br />10,760.315 -
<br />10,760.315
<br />Assumption Change
<br />2011
<br />12,363.217 -
<br />12,363.217
<br />Special(Gain)/Loss
<br />2011
<br />(7,365.492) -
<br />(7,365.492)
<br />Payment(Gain)/Loss
<br />2012
<br />5,629.243 -
<br />5,629.243
<br />(Gain)/Loss
<br />2012
<br />(264.240) -
<br />(264.240)
<br />(Gain)/Loss
<br />2013
<br />100,132.646 -
<br />100,132.646
<br />Assumption Change
<br />2014
<br />43,507.182 -
<br />43,507.182
<br />(Gain)/Loss
<br />2014
<br />(63,657.365) -
<br />(63,657.365)
<br />(Gain)/Loss
<br />2015
<br />32,663.590 -
<br />32,663.590
<br />Assumption Change
<br />2016
<br />16,169.642 -
<br />16,168.642
<br />(Gain)/Loss
<br />2016
<br />38,544.420 -
<br />38,544.420
<br />Assumption Change
<br />2017
<br />13,911.421 -
<br />13,911.421
<br />(Gain)/Loss
<br />2017
<br />(21,744.346) -
<br />(21,744.346)
<br />Method Change
<br />2018
<br />6,562.427 -
<br />6,562.427
<br />Assumption Change
<br />2018
<br />31,746.753 -
<br />31,746.753
<br />(Gain)/Loss
<br />2018
<br />(13,468.613) -
<br />(13,468.613)
<br />Al Significant Increase*
<br />2019
<br />141.851 -
<br />141.851
<br />Non-investment(Gain)/Loss
<br />2019
<br />2,974.088 -
<br />2,974.088
<br />Investment(Gain)/Loss
<br />2019
<br />4,001293 -
<br />4,003.293
<br />Total
<br />292,703.672 -
<br />292,703.672
<br />1
<br />SANTA ANA
<br />g o e e a a a o
<br />Debt Service a Unrefunded UAL Current UAL FY22 UAL
<br />Amortization Base
<br />Year
<br />Balances
<br />UAL Refunded
<br />UAL Remaining
<br />Fresh Start
<br />2005
<br />(2,800.549)
<br />-
<br />(2,800.549)
<br />Benefit Change
<br />2006
<br />1,500.690
<br />-
<br />1,500.690
<br />Assumption Change
<br />2009
<br />14,083.767
<br />-
<br />14,083.767
<br />Special (Gain)/Loss
<br />2009
<br />31,769.094
<br />(31,769.094)
<br />-
<br />Special(Gain)/Loss
<br />2010
<br />(11,745.462)
<br />-
<br />(11,745.462)
<br />Assumption Change
<br />2011
<br />15,355.805
<br />-
<br />15,355.805
<br />Special(Gain)/Loss
<br />2011
<br />(4,365A42)
<br />-
<br />(4,365.942)
<br />Payment(Gain)/Loss
<br />2012
<br />8,239.758
<br />(8,239.758)
<br />-
<br />(Gain)/Loss
<br />2012
<br />74,443.250
<br />(74,443.250)
<br />-
<br />(Gain)/Loss
<br />2013
<br />140,365.987
<br />(140,365.987)
<br />-
<br />Assumption Change
<br />2014
<br />52,003.240
<br />-
<br />52,003.240
<br />(Gain)/Loss
<br />2014
<br />(84,279.949)
<br />-
<br />(84,279.949)
<br />(Gain)/Loss
<br />2015
<br />59,805.689
<br />(28,078.909)
<br />31,726.780
<br />Assumption Change
<br />2016
<br />19,756.175
<br />-
<br />19,756.175
<br />(Gain)/Loss
<br />2016
<br />51,205.324
<br />(12,516.578)
<br />38,688.746
<br />Assumption Change
<br />2017
<br />23,218.574
<br />-
<br />23,218.574
<br />(Gain)/Loss
<br />2017
<br />(33,611.702)
<br />-
<br />(33,611.702)
<br />Method Change
<br />2018
<br />5,497.157
<br />(5,497.157)
<br />Assumption Change
<br />2018
<br />40,053.249
<br />(40,053.249)
<br />-
<br />(Gain)/Loss
<br />2018
<br />(1,536.868)
<br />-
<br />(1,536.868)
<br />Non-investment(Gain)/Loss
<br />2019
<br />5,058.705
<br />(5,058.705)
<br />-
<br />Investment(Gain)/Loss
<br />2019
<br />4,675.386
<br />(4,675.386)
<br />-
<br />Total 408,691.378 (350,698.072)
<br />Page 10 BofA SECURITIES
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