CONFIDENTIAL ‐ NOT FOR DISTRIBUTION DRAFT 8/15/2019

VALUATIONS FOR ILLUSTRATIVE PURPOSES ONLY

DRAFT

POTENTIAL AIRPORT LEASE NET PROCEEDS: "WATERFALL" ILLUSTRATION   / RESPONSE TO AIRLINE COUNTER ?

If Proposed Gross Transaction Value At: $     1,500,000,000 $     1,750,000,000 $     2,000,000,000 $     2,250,000,000

Less: Upfront Payment to Airlines by Bidder $       (125,000,000) $       (125,000,000) $       (125,000,000) $       (125,000,000)
Gross Consideration to City $     1,375,000,000 $     1,625,000,000 $     1,875,000,000 $     2,125,000,000

Less:
Est. Defeasance of Outstanding Airport Debt 1 $       (696,000,000) $       (696,000,000) $       (696,000,000) $       (696,000,000)
Grandfathered Payments ‐ NPV @ 4.5% $       (175,000,000) $       (175,000,000) $       (175,000,000) $       (175,000,000)
Estimated Transaction Fees (based on GC to City) $          (36,250,000) $          (42,500,000) $          (47,500,000) $          (52,500,000)
Airlines Value Share  $                              ‐ $            (6,250,000) $          (18,750,000) $          (34,375,000)
Other (e.g. environmental, personnel, etc.)  ??? ??? ??? ??? ???
Net Payment to City For Non‐Airport Purposes = $         467,750,000 $         705,250,000 $         937,750,000 $     1,167,125,000

1 
Estimate as of 8/2/19 subject to change; incl. $28.5M in VCAP

DRAFT Airlines Proposal Using As is City Recession Scenario

If Revised Offer ‐ As Is City Case            219,000,000            225,000,000            238,000,000            253,000,000

% of Gross Transaction 14.6% 12.9% 11.9% 11.2%
% Of Net to City 46.8% 31.9% 25.4% 21.7%

If Revised Offer ‐ As Is Airlines Case $6.00 CPE ??            147,000,000            153,000,000            163,000,000            181,000,000

% of Gross Transaction 9.8% 8.7% 8.2% 8.0%
% Of Net to City 31.4% 21.7% 17.4% 15.5%

If Revised Offer ‐ As Is Airlines Case $4.00 CPE ??            127,000,000            133,000,000            146,000,000            161,000,000

% of Gross Transaction 8.5% 7.6% 7.3% 7.2%
% Of Net to City 27.2% 18.9% 15.6% 13.8%