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out to the insurers to solicit credit approvals and insurance bids. I he decision to use bond insurance will be
<br />rnade 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 />— bath 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 (5096 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 />• Fo'..I Prcpayrncm, ul FY22 UAL rill 8/1/21
<br />Funded
<br />No Prepayment
<br />• Prepayment of Selected Bases on Closing Date to
<br />reduce smort 7atlpn payments Ueinnning I Y.r3
<br />Safety UAL Funded
<br />' full Prepayment of FY)) [JAI by 8/1/)l
<br />• FLr!I Prepayment of FY9) UAI by 8/1/)l
<br />• PrCpaymePL of SL,Ic,-ud Bases Un Clo,mb Dale Lo
<br />• Full Prap2yrncnL urn CluSieb DoLe of UAL I-i I)L as
<br />reduce amorTi2at on paynlente begi ini ng FY23
<br />of6/30/2022 toil current amortization bases
<br />Band Structure
<br />Taxable Callable FIEed Rate Bonds
<br />• Taxable Cal sole Fixed Rate Bores
<br />• Principcl due 6/1; Interest due 6/1 and 13/1
<br />• Princi pa'. cue 6/1, Interest dLe 6/1 end 12/1
<br />• Poi C:dl D:rlr.: f/1/21131
<br />• P;v (,ill Dv'. c: fi/1 %Jf131
<br />• Serials 2022 2036
<br />• Serials 2022 2035
<br />• Term Bond 2037-2044
<br />ncex Eligible Term Bond 2036-2044
<br />rY?2-7b,virlool .,.Ving> lalgITl of 510 vi11'. iLm
<br />• rV27-26 nuol 1.1Ving.7 lalgrl of a?0 111111 am
<br />Par Amount
<br />$3S] 405,000
<br />$649,230,00o
<br />All -in TIC
<br />3.0?8190
<br />].88395
<br />Average Life
<br />14.8 years
<br />13.2 years
<br />Cumulative Savings
<br />Sl 84,h2 i,f ID(1
<br />] it h,81 fi Ilnl I
<br />Financing PV Savings
<br />$152 826,000
<br />S264,693,000
<br />(% of Part
<br />(12.591. of Par Amount)
<br />(40.80A of Par Amon ntl
<br />Actuarial PV Savings
<br />$122,118,000
<br />$210.474.000
<br />(%of Part
<br />(34m m of Par AoOnQ
<br />!1
<br />Q (32A%of Par Arrlo,
<br />Scenario 1 (50% UAL Payment)
<br />]UaOn
<br />Ur.::
<br />)
<br />r
<br />All I.TIC
<br />3@fiz 1U81z
<br />A.11— —'. 8-1 Y",
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<br />2LUL
<br />11 e1141c1 1149391141
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<br />B i Cli.mp: 3007
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<br />300e ♦$04690 1,5OO 690
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<br />S111I G111i/L0a 2010
<br />1076f1.315 111,16031S A^:.n]mn C 11,C
<br />1011 15,355305 15,356805
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<br />108091378 Y1390080721 97,9931106:
<br />ity Council
<br />23 —
<br />109 5/18/2021
<br />e
<br />Pa 10
<br />g
<br />BOfA SECURITIES r°
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