Investor Presentation General Obligation State Road Bonds, Series - - PowerPoint PPT Presentation

Investor Presentation

General Obligation State Road Bonds, Series 2018 A&B May 9, 2018

Disclaimer

Investor Presentation 2

This investor presentation that you are about to view is provided as of May 9, 2018 for a proposed offering of the State of West Virginia, General Obligation State Road Bonds (the “Bonds”). This presentation has been prepared for information purposes only and for your sole and exclusive use in connection with the proposed transaction. The information contained herein is subject to completion and amendment. Any

• ffer or solicitation with respect to the Bonds will be made by means of a final official statement. If you are viewing this investor presentation

after the date stated above, events may have occurred that have a material adverse effect on the financial information presented. This presentation does not constitute nor does it form part of an offer to sell or purchase, or the solicitation of an offer to sell or purchase, any securities or an offer or recommendation to enter into any transaction described herein nor does this presentation constitute an offer, commitment or obligation on the part of the issuer, underwriter or any of its affiliates to provide, issue, arrange or underwrite any financing

• r enter into any other transaction. You will be responsible for making your own independent investigation and appraisal of the risks,

benefits, appropriateness and suitability of the proposed transaction and any other transactions contemplated by this presentation and neither the issuer nor the underwriter is making any recommendation (personal or otherwise) or giving any investment advice and will have no liability with respect thereto. Neither the issuer nor the underwriter makes a representation or warranty as to the (i) accuracy, adequacy or completeness of any information in this investor presentation or (ii) legal, tax or accounting treatment of any purchase of Bonds by you or any other effects such purchase may have on you and your affiliates. This investor presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results may differ materially from those expressed or implied by such forward-looking statements. Accordingly, we caution you not to place undue reliance on these statements. All statements other than the statements of historical fact could be deemed forward-looking. All opinions, estimates, projections, forecasts and valuations are preliminary, indicative and are subject to change without notice. THE PRINTING, DUPLICATING, DOWNLOADING, SCREEN CAPTURING, ELECTRONIC STORING, RECORDING, PUBLISHING OR DISTRIBUTING OF THIS INVESTOR PRESENTATION IN ANY MANNER IS STRICTLY PROHIBITED. By viewing this investor presentation you acknowledge that you understand and agree to the provisions of this page.

Transaction Summary

Investor Presentation 3

Negotiated Series 2018A Bonds to sell May 21st, followed by Competitive Series 2018B Bonds May 23rd

General Obligation State Road Bonds, Series 2018 A General Obligation State Road Bonds, Series 2018 B Estimated Size* $311,795,000 $488,205,000 Method of Sale Negotiated Competitive Use of Proceeds Highway and bridge construction in the State Tax Status Federally Tax-Exempt, State of West Virginia Tax-Exempt Final Maturity June 1, 2043 Maturities* Semi-annual principal payments Serial Bonds: 12/1/18 – 6/1/30, 12/1/32 – 6/1/33, 12/1/37 – 6/1/38 Term Bond: 12/1/42, 6/1/43 Semi-annual principal payments Serial Bonds: 12/1/18 –6/1/43 (See Notice of Sale) Denominations $1,000 $5,000 Interest Payment Dates December 1st and June 1st, commencing December 1, 2018 Security See “Security” slide herein Optional Redemption* TBD 6/1/2028@ Par Current Ratings (M/S/F) Aa2 / AA- / AA Sale Date May 21, 2018 May 23, 2018 Closing Date June 7, 2018 Financial Advisor Public Resources Advisory Group

*Approximate, subject to change

Overview of the State of West Virginia

• The State of West Virginia, also known as the Mountain

State, was created by Presidential proclamation effective

• n June 20, 1863
• Located in the South Atlantic region of the United States,

West Virginia is bordered by the states of Maryland, Pennsylvania, Ohio, Kentucky and Virginia

• Located within 500 miles of half of the United States

population and a third of Canada's, West Virginia is well positioned as a desirable, affordable and easily accessible tourist destination

• West Virginia has 24,077 square miles of land area, an

average elevation of 1,500 feet and a population of approximately 1.82 million

• The ancient geological events that created West

Virginia's scenic mountains also endowed it with extensive deposits of high quality coal, natural gas, petroleum, limestone, salt and sand

• West Virginia’s economy has a long tradition of mining

and energy production, as well as related industries, such as chemicals, steel, cement and glass production

Investor Presentation 4

State’s Economy is Rebounding

Investor Presentation 5

• West Virginia is in a state of transition with energy mix switching from coal to natural gas
• Natural gas production up more than six fold since 2006 to nearly 1.4 trillion cubic feet
• Growth in supply exceeds current pipeline infrastructure
• Coal production down more than 40% since 2006: rebounded from 80 to 90 million tons in 2018
• Economic measurement: Real GDP 2017: WV 2.9% average in 2nd and 3rd Quarters
• SA non-farm private sector payroll employment up 1.2% in March (6,900 jobs)
• Construction up 11.2% (3,400); Mining and logging up 8.0% (1,700); Mfg. up 0.9% (400)
• Private service producing sectors up 0.3% (1,400)
• State performance compared to the rest of the nation (2017)
• WV per capita income rose by 3.4% in 2017 versus U.S. increase of 2.4%
• State’s unemployment rate of 5.4% in March 2018 versus 4.1% for the U.S.

Economic Highlights

State Employment and Income Figures Continue to Improve

Investor Presentation 6

72.8% 80.1% 74.5% 75.3% 70.0% 72.0% 74.0% 76.0% 78.0% 80.0% 82.0% 84.0% WV-U.S. Ratio

Civilian Unemployment Rates – 2010 - 2017 WV – U.S. Per Capita Income Ratio – 2000-2017

4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2010 2011 2012 2013 2014 2015 2016 2017 West Virginia United States

Source: West Virginia Workforce; United States Department of Labor, Bureau of Labor Statistics. Source: United States Department of Commerce, Bureau of Economic Analysis and the Bureau of the Census.

State Per Capita Growth Improving – Rate Exceeded US Rate in 2017

Investor Presentation 7

Per Capita Income Growth Rate Year Over Year – WV and US

• 5.0%
• 3.0%
• 1.0%

1.0% 3.0% 5.0% 7.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 West Virginia United States

Source: United States Department of Commerce, Bureau of Economic Analysis and the Bureau of the Census.

Personal Income and Consumers Sales Tax Growth Rate Gradually Improving

Investor Presentation 8

• 2.0%

0.6% 2.5% 7.7% 0.3%

• 0.7%

3.0% 4.5%

• 3.0%
• 1.0%

1.0% 3.0% 5.0% 7.0% 9.0% FY2016 ACTUAL FY2017 ACTUAL FY2018 BUDGET FY2019 BUDGET Personal Income Taxes Consumer Sales Taxes

Personal Income and Consumer Sales Tax Revenue Personal Income and Consumer Sales Tax Growth Rate

* * The revenue growth targets necessary to match budgetary appropriations are 5.4% for the personal income tax component and 3.3% for the sales tax component

1,840 1,803 1,814 1,860 2,004 1,228 1,231 1,222 1,259 1,316 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 FY2015 ACTUAL FY2016 ACTUAL FY2017 ACTUAL FY2018 BUDGET FY2019 BUDGET

Millions

Personal Income Taxes Consumer Sales Taxes

Source: State Budget Office - Reports and Charts.

244,880 394,125 1,375,108

500,000 1,000,000 1,500,000 2008 2009 2010 2011 2012 2013 2014 2015 2016

Severance Taxes are Stabilizing

WV Natural Gas Production

Million Cubic Feet

WV Coal Production

Total Tons Produced

Investor Presentation 9

157,778,087 134,661,745 79,757,315 60,000,000 110,000,000 160,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gains in Natural Gas are Offsetting Reduced Coal Production

Severance Tax Revenues

Source: United States Energy Information Administration, Natural Gas Wellhead Value and Marketed Production Report. Source: U. S. Energy Information Administration 2016 Coal Report (November 2017) and Coal Data Browser (Aggregate Coal Mine Production - Total 2016). Source: State Budget Office - Reports and Charts.

$414 $276 $321 $361 $362 $250 $300 $350 $400 $450 FY2015 ACTUAL FY2016 ACTUAL FY2017 ACTUAL FY2018 BUDGET FY2019 BUDGET

Millions

Economic Growth and New Revenue Measures have Contributed to Higher Gen Rev Fund Revenues

Investor Presentation 10

FY2015-2019 General Revenue Fund – Budgetary Basis

Statement of Revenues, Expenditures & Changes in Fund Balance (In Thousands) COMPONENT FY2015 FY2016 FY2017 FY2018 FY2019 ACTUAL ACTUAL ACTUAL BUDGET BUDGET Personal Income Taxes $1,840,049 $1,803,311 $1,813,866 $1,860,000 $2,004,000 Consumer Sales Taxes 1,227,886 1,231,044 1,222,283 1,259,000 1,316,000 Severance Taxes 414,173 276,440 321,031 361,000 361,700 Corporate Taxes 186,101 143,605 116,306 109,000 142,100 Business & Occupation Taxes 120,522 119,174 111,885 114,500 117,500 Other Taxes 246,097 245,211 344,062 342,300 333,100 Excess Lottery Transfer 92,600 84,164 65,464 65,000 65,000 Licenses, Permits & Fees 9,313 8,743 8,666 8,250 8,170 Departmental Charges 18,223 19,029 19,134 23,000 23,600 Investment Earnings 2,343 2,509 6,045 16,000 23,000 Other 46,503 169,445 137,768 67,000 45,750 TOTAL $4,203,810 $4,102,675 $4,166,510 $4,225,050 $4,439,920

Source: State Budget Office - Reports and Charts.

Successful 2018 Legislative Session

Investor Presentation 11

• A balanced budget was passed within the 60-day session without any

extensions (first time in 32 years)

• Fully funded all retirement contributions and made OPEB contributions
• Funded PEIA without increasing teachers’ and state workers’ healthcare

contributions

• Able to fund an average five percent pay raise for teachers, service personnel,

and state employees

• No draws from the rainy day fund
• Dedicated funding for new programs to improve our State (young entrepreneur

reinvestment act/drug rehabilitation) and bolster existing social services programs (ex. foster care)

State Continues to Improve Structural Balance

Investor Presentation 12

• Difficult budget years in FY 2014 – FY 2018. Outlook is better for FY 2019 and beyond
• During formulation of the FY 2019 budget, closed an estimated $208 million funding gap
• The Medicaid Program ended FY 2017 with a robust State matching share cash balance.
• Very good investment returns in FY 2017 of 15.8% in the retirement systems
• Budget Highlights:
• 100% of Required Retirement Contributions are funded in the FY 2019 budget
• Major new dollars for Social Services and deferred maintenance
• Pay raises averaging 5% for teachers, service personnel, and state employees
• PEIA fully funded with no programmatic changes (employee premiums frozen)
• No Rainy Day funds used to balance FY 2019 budget
• Left $58 million unappropriated

FY 2019 Budget Summary

State has Robust Rainy Day Fund Balances

Investor Presentation 13

Rainy Day Balance at End of Fiscal Year

(except where noted)

Represents 16.67% of FY2018 appropriation

$21 $73 $79 $359 $581 $473 $556 $659 $851 $914 $956 $869 $779 $652 $711 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1995 2000 2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4/30/2018

Millions

Source: State Budget Office - Reports and Charts - Other Reports (Rainy Day Fund).

State has Strong Financial Management Practices

Investor Presentation 14

Institutionalized policies and practices have worked throughout economic cycles:

• Six-year budget and financial plan is a guide for policy makers
• Previous reductions in base budget expenditures
• Ongoing monitoring of revenue and expenses
• Lottery revenue forecasts ensure flexibility
• Commitment to retain adequate reserves
• Reserves automatically replenished through

budget surpluses

Financial Management Practices

State is Committed to Reducing Long-Term Liabilities

Investor Presentation 15

• Pensions
• Continued faithful commitment to fully funding PERS and TRS with paying 24 consecutive years of the

40 year plan

• Consistent funding, dedicated surplus use, level dollar amortization and tier 2 cost saving program
• Workers’ Compensation Old Fund
• In 2006, the State’s liability was $2.25 billion, and by the end of 2018, the Old Fund will be fully funded
• Dedicated revenues over 13 years, private sector WC rates reduced each year for over a decade
• Other Post Employment Benefit Plan
• OPEB fund created in FY2007 with dedicated revenues since FY2017
• Plan projected to be fully funded by 2037

Commitment to Reducing Long-term Liabilities

State has Improved Pension Funding Levels

Investor Presentation 16

Improved Public Employees Retirement System (PERS) and Teachers’ Retirement System (TRS) % Funded

73.1% 83.6% 97.0% 65.9% 78.4% 79.6% 86.8% 91.5% 19.1% 24.6% 51.3% 41.3% 53.7% 57.9% 66.0% 67.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2003 2005 2007 2009 2011 2013 2015 2017 PERS TRS

Source: CPRB Comprehensive Annual Financial Report (CAFR), Fiscal Years Ended June 30, 2017 and June 30, 2016, for July 1, 2007 through 2016; PERS, TRS, SPDDRS, SPRS, and JRS Actuarial Valuation Reports for July 1 2017.

Roads to Prosperity Program Legislation

Investor Presentation 17

• The Legislature passed a series of funding measures that, collectively, could generate up to $2.8

billion for highway and bridge construction and maintenance in the State over the next 7-10 years

• Included in the funding measures was Senate Bill 1006, which is expected to add approximately

$125 million of revenues annually to the State Road Fund by the following measures, all becoming effective July 1, 2017:

• Increasing certain registration fees charged by the Division of Motor Vehicles
• Raising the floor on the average wholesale price of gas subject to the motor fuel excise tax and

thereby increasing the motor fuel excise tax by 3.5 cents/gallon

• Increasing the consumer sales tax on motor vehicle sales from 5% to 6%

The West Virginia Legislature has passed several measures to increase transportation funding that is designed to improve the State’s roads and bridges, create jobs and boost the economy

RTP General Obligation State Road Bonds

Investor Presentation 18

• On October 7, 2017, voters approved the Roads to Prosperity Amendment of 2017

authorizing the issuing and selling of General Obligation State Road Bonds in the following amounts over a four-year period:

• Fiscal year beginning July 1, 2017, an amount not to exceed $800 million;
• Fiscal year beginning July 1, 2018, an amount not to exceed $400 million;
• Fiscal year beginning July 1, 2019, an amount not to exceed $200 million; and
• Fiscal year beginning July 1, 2020, an amount not to exceed $200 million.
• Any bonds not issued during the respective fiscal year may be carried forward and

issued in any subsequent year before July 1, 2021

Voter approval of the $1.6 billion demonstrates a State-wide commitment to rebuilding the State’s roads

Increased Taxes and Fees Deposited to State Road Fund

Investor Presentation 19

Tax increases effective as of July 1, 2017 are projected to produce $126 million in incremental annual revenues to support $1.6 billion in RTP GO State Road Bonds

Revenue Enhancement Description FY 2018 (Projected)* FY 2019 (Projected)* FY2020 (Projected)* Motor Fuel Taxes Reset the floor priced used to calculate the Wholesale Gas Tax from $2.34/gallon to $3.04/gallon, increasing the Motor Fuel Tax by 3.5 cents/gallon $44,900 $49,000 $49,000 Consumer Sales Tax Increased Sales Tax on motor vehicles from 5% to 6% (except leases) 27,800 37,000 37,000 Vehicle / License Fees Increases fees charged by the West Virginia Division of Motor Vehicles for annual vehicle registration fees and license and

• ther fees

40,400 40,400 40,800 Total $113,100 $126,400 $126,800

ROADS TO PROSPERITY

Senate Bill 1006

Source: West Virginia Department of Revenue. *Approximate, subject to change

State Road Fund Revenues Projected to Increase 15.9% in FY2018

Investor Presentation 20

Historical and Projected State Revenue Components

• Motor Fuel Taxes:
• Motor Fuel Excise Tax: Flat rate equal to 20.5 cents/gallon plus a variable component equal to 5% of the wholesale price of motor fuel
• Motor Carrier Road Tax: Equal to the flat rate component of the motor fuel excise tax listed above and imposed on every motor carrier traveling on or over

roads in the State

• Motor Vehicle Sales Tax: Imposed on sales of motor vehicles to West Virginia residents at a rate of 6% of the net sales price
• License/Registration Fees: Imposed by Chapter 17A of the West Virginia Code (increased in 2017)
• Highway Litter Control: One dollar for each certificate of registration and renewal
• Miscellaneous Revenue: Includes interest on investments, map sales, permits, etc.

State Road Fund: Statement of State Revenue Components by Source (In Thousands) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 (Actual) (Actual) (Actual) (Projected)* (Projected)* (Projected)* Motor Fuel Taxes $434,853 $396,397 $381,304 $435,300 $443,900 $448,600 Motor Vehicle Sales Tax 206,026 206,247 204,111 225,869 230,930 231,061 License/Registration Fees 100,601 86,983 104,354 142,722 142,196 143,682 Highway Litter Control 1,517 1,853 1,876 1,719 1,719 1,719 Miscellaneous Revenue 26,674 26,737 26,208 26,495 16,495 18,995 Total $769,671 $718,218 $717,853 $832,105 $835,240 $844,057

Source: West Virginia Budget Office. Projections revised as of April 2018. * Approximate, subject to change

Security Features of the Bonds

Investor Presentation 21

General Obligation Bonds with additional credit features provided by the Bond Act

• The Bonds are a direct and general obligation of the State backed by its full faith and credit
• The State has committed to make appropriations from the State Road Fund for deposit into the Roads to Prosperity Debt Service Fund

(“RTP DSF”) to pay debt service on the Bonds

• To the extent that revenues of the State Road Fund are insufficient in any year to satisfy debt service requirements, the State is obligated

to implement an annual State tax to pay the debt service on the Bonds

• Dedicated Taxes: Section 14(a) of the Bond Act requires that an annual amount from the collections of the motor fuel tax, the motor

vehicle sales tax and certain registration and other fees collected by the State Division of Motor Vehicles, that are required to be deposited into the State Road Fund, be dedicated to pay debt service on the Bonds

• Segregated Payment Account: Section 3 of the Bond Act creates the RTP DSF into which all amounts appropriated by the Legislature from

the State Road Fund shall be deposited

• Accelerated Monthly Funding: Section 14(b) of the Bond Act provides that, beginning in the month of July in the first fiscal year in which

the first interest payment on the Bonds is due, and monthly thereafter for the first ten months, there shall be deposited into the RTP DSF an amount equal to 1/10th of the projected debt service requirements from moneys appropriated by the Legislature

• Finally, in the event of late budget in any year, Governor has plenary power and authority to, by Executive Order, direct payment on the

Bonds

Statutory provisions governing security for the Bonds includes:

Bonds to Fund Regionally Significant Transportation Projects

Investor Presentation 22

The Series 2018 Bonds will fund all or a portion of 10 projects across the State with aggregate project costs of approximately $900 million

ID County Project Work Estimated Cost

1 Berkeley 1-81 Widening Widen I-81 MP 8 to MP 12 $53,000,000 2 Cabell 1-64 Widening – Barboursville to East Mall Road O/P Bridge Construct 2 miles of additional lane in both directions for an 8-lane section between I/Cs $76,000,000 3 Lewis I-79 Exit 99 Interchange Rebuild SB Exit and Install Lighting $23,000,000 4 Monongalia U.S. 119 Mileground – Cheat Rd – Donna Ave (existing roundabout to Airport) – widen $15,000,000 5 Ohio I-70 Bridge Rehabilitation/Renovation Major Rehab and Replace $172,000,000 6 Putnam U.S. 35 Paving and Interchange Pave 14 miles of U.S. 35 currently under a Grade and Drain project including a new I/C near Buffalo Bridge $93,000,000 7 Putnam I-64 Widening Widen I-64 from U.S. 35 to Nitro including new bridge across Kanawha River $190,000,000 8 Raleigh I-77/I64 Widening at Beckley Widen I-77/I-64 from MP 40.3 to MP 47.6 $90,000,000 9 Tucker Corridor H – U.S. 219 Connector to WV 72 I/C Acquire r/w and Construct 4 lane Corridor H $144,000,000 10 Wyoming Coalfields Expressway Paving Pave Coalfields Expressway grade and drain project $47,000,000

$0 $20 $40 $60 $80 $100 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Millions Series 2018 Debt Service Existing SRF Bonds

Series 2018 Bonds Estimated Sources and Uses

Estimated Sources and Uses of Funds Sources: 2018A (Neg.) 2018B (Comp.) Total Par Amount $311,795,000.00 $488,205,000.00 $800,000,000.00 Premium 23,636,046.75 69,516,187.60 93,152,234.35 Deposit from SRF 1,155,044.58 2,166,409.69 3,321,454.27 Total Sources $336,586,091.33 $559,887,597.29 $896,473,688.62 Uses: Project Fund $335,431,046.75 $557,721,187.60 $893,152,234.35 Issuance Costs 1,155,044.58 2,166,409.69 3,321,454.27 Total Uses $336,586,091.33 $559,887,597.29 $896,473,688.62

• The 2018 Bonds will be issued with a

par amount of $800 million

• The bonds will have semi-annual

principal repayment with December 1 and June 1 maturity dates.

23

Pro Forma 2018 Debt Service

Investor Presentation

Plan of Finance

Maturity 2018A (Negotiated) 2018B (Competitive) Maturity 2018A (Negotiated) 2018B (Competitive) 12/1/2018 6,010,000 2,005,000 6/1/2031

• 15,360,000

6/1/2019 6,365,000 2,130,000 12/1/2031

• 15,745,000

12/1/2019 6,525,000 2,180,000 6/1/2032

• 16,140,000

6/1/2020 6,690,000 2,235,000 12/1/2032 8,270,000 8,270,000 12/1/2020 6,855,000 2,290,000 6/1/2033 8,445,000 8,440,000 6/1/2021 7,030,000 2,345,000 12/1/2033

• 17,230,000

12/1/2021 7,205,000 2,405,000 6/1/2034

• 17,665,000

6/1/2022 7,385,000 2,465,000 12/1/2034

• 18,105,000

12/1/2022 7,570,000 2,525,000 6/1/2035

• 18,555,000

6/1/2023 7,760,000 2,590,000 12/1/2035

• 19,020,000

12/1/2023 7,950,000 2,655,000 6/1/2036

• 19,495,000

6/1/2024 8,150,000 2,720,000 12/1/2036

• 19,985,000

12/1/2024 8,355,000 2,790,000 6/1/2037

• 20,485,000

6/1/2025 8,565,000 2,855,000 12/1/2037 10,495,000 10,500,000 12/1/2025 8,780,000 2,930,000 6/1/2038 10,735,000 10,735,000 6/1/2026 9,000,000 3,000,000 12/1/2038

• 15,345,000

12/1/2026 9,225,000 3,075,000 6/1/2039

• 15,705,000

6/1/2027 9,455,000 3,155,000 12/1/2039

• 16,070,000

12/1/2027 9,690,000 3,235,000 6/1/2040

• 16,440,000

6/1/2028 9,930,000 3,315,000 12/1/2040

• 16,815,000

12/1/2028 10,180,000 3,395,000 6/1/2041

• 17,210,000

6/1/2029 10,435,000 3,480,000 12/1/2041

• 17,605,000

12/1/2029 10,695,000 3,570,000 6/1/2042

• 18,015,000

6/1/2030 10,965,000 3,655,000 12/1/2042 36,110,000 18,425,000 12/1/2030

• 14,985,000

6/1/2043 36,970,000 18,860,000 Total 311,795,000 488,205,000

Plan of Finance

Investor Presentation 24

Series 2018 Preliminary Amortization Structured with Semi-Annual Principal Payments

*Approximate, subject to change **Term Bond

** **

Timetable and Contact Information

Date Event

May 9th Mail Preliminary Official Statement May 21st Negotiated Retail Only Pricing May 23rd Competitive Bond Sale June 7th Closing

25

MAY 2018

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 21 22 23 23 24 25 26 27 28 29 30 31

JUNE 2018

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Contact Phone / Email Christine Fay PRAG (610) 565-5990 cfay@pragadvisors.com Jessica Donnelly PRAG (610) 565-5990 jdonnelly@pragadvisors.com Tom Huestis PRAG (610) 565-5990 thuestis@pragadvisors.com Eugene Spinelli BofA Merrill Lynch (215) 446-7018 Eugene.Spinelli@baml.com

Investor Presentation