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30 <br /> Slide#4 <br /> Key Financing Terms <br /> Limited Obligation Bonds,Series 2026A&B <br /> ➢ Security Pledge-County assets serve as collateral,with payments subject to annual County appropriations <br /> ➢ Maturity Term-5-20 Year maturities matches the useful life of the assets <br /> ➢ April 1 and October 1 Repayment Dates to Bank Trustee;First Interest Payment on October 1,2026,and First <br /> Principal Payment on April 1,2028,consistent with the Debt Model <br /> ➢ Estimated Interest Rates- Between 4.5%-5.5%subject to market conditions <br /> ➢ Maximum Annual Debt Service-Estimated to be$6.395 million in FY 2028 <br /> ➢ Source of Repayment-Property Taxes,Solid Waste Fees,Sportsplex Fees,and OGFD Repayment <br /> ➢ Because Limited Obligation Bonds are not secured by a direct pledge ofthe County's taxing power,they are <br /> usually rated one notch below the County's general obligation bonds <br /> ➢ Current Limited Obligation Bonds-Aa1/AA+/AA+from Moody's,Standard&Poor's,and Fitch Ratings <br /> V1 <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br /> Slide#S <br /> Limited Obligation Bonds Collateral Overview <br /> ➢ Security Pledge-County assets serve as collateral,with payments subject to <br /> annual County appropriations <br /> ➢ Lenders generally require that the value of the collateral be equal to at least <br /> 50%of the financing amount(for example,at least$10 million of collateral <br /> for a$20 million loan) <br /> ➢ The collateral for the Series 2026A&B Bonds will include the County's <br /> Northern and Southern Campuses,the County Justice Facility,and the new <br /> Crisis Diversion Facility.The value of this collateral will comfortably exceed <br /> lender requirements <br /> ➢ Pursuant to the County's financing document,the County can continue to <br /> borrow money against this same collateral pool as long as a meaningful <br /> portion of the amount financed is used to improve property in the collateral <br /> pool <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br />