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74 <br /> Orange County Transit Plan April 25, 2017 <br /> Two types of borrowing are anticipated — short-term, Limited to provide a portion of the financing, and to assist in projects <br /> Obligation Bonds (LOBS), and a long-term federally backed being completed either that could not be completed without <br /> Transportation Infrastructure Finance and Innovation Act the TIFIA loan or the TIFIA loan allows the project to be <br /> (TIFIA) loan. Some of the short-term LOBS are to be repaid by completed at lower cost or a more accelerated timeline. <br /> federal grants for the D-O LRT Project, and the remainder of the <br /> LOBS and the TIFIA loan would be repaid by Tax District The loans allow borrowers to borrow at the federal <br /> Revenue. The final terms of the debt, including the timing of government's own borrowing rates (the loan rate will be based <br /> the issuances, will depend on a variety of factors; this section on then-current treasury rates). Repayment terms are allowed <br /> describes the guiding assumptions used to develop this Plan. As up to 35 years past the project completion. Interest and <br /> implementation of the Plan progresses, the financing structure principal can be deferred up to 5 and 10 years past project <br /> will be refined to ensure the most efficient use of Tax District completion. The loan rate is set at closing, and the loan is <br /> Revenues. treated as a drawdown facility. No interest accrues until <br /> drawdowns are made. <br /> This Plan assumes that during the latter half of the D-O LRT <br /> Project construction period in fiscal years 2024 through 2028, The TIFIA loan is projected to utilize the terms of the TIFIA <br /> GoTriangle will issue short-term LOBS intended to be repaid by program and to have a maturity of 35 years after project <br /> a combination of Orange County Tax District Revenues and completion, assuming a debt service payment deferral period <br /> federal grant funds for the D-O LRT Project. The total amount of five years after project completion and interest-only <br /> of LOBS intended to be repaid by Orange Tax District Revenue payments for four years (2033-2036). All LOBS will be repaid in <br /> is$72.5 million YOE.The amount of LOBS intended to be repaid full before debt service for the TIFIA loan begins. This Plan <br /> by federal grant funds is $57.4 million. The repayment terms assumes that a par amount of$79.6 million YOE will be funded <br /> vary for each issuance, but all LOBs will be repaid in full before by Orange Tax District Revenue.The cost of issuance is assumed <br /> debt service for the TIFIA loan begins in fiscal year 2033. The at $148,000. <br /> cost of issuance for all LOBs is assumed to be one percent of the <br /> par amount. In addition to financing needed for D-O LRT Project <br /> construction, an additional $72.0 million YOE in borrowing is <br /> In 2020, GoTriangle plans to close on a TIFIA loan for the needed to fund Orange County's share of State of Good Repair <br /> project. The TIFIA program is a federal loan program costs for the project. These LOBs, which are to be issued by <br /> administered by the Department of Transportation. The GoTriangle and funded by Orange Tax District Revenue, would <br /> program offers long-term, low-cost borrowing for major be issued in fiscal years 2040, 2048, 2053, and 2058. <br /> transportation infrastructure projects.The program is designed <br /> Final Page 50 of 65 <br />