Prepay Panel Discussion

Prepay Panel Discussion American Public Gas Association 2016 Gas Supply Conference January 2016

TABLE OF CONTENTS

I. II. III. IV. V. VI. VII.

Introduction Observations and Insights from Personal Experience Market Conditions Recent Activity New Gas Prepayments The Future Questions and Open Discussion

Observations and Insights from Personal Experience
Past Prepayments


Economic Drivers
Interest Rates
Gas Prices
Tenor


Structures/Ratings
Supplier/Municipal/Other Counterparty
Asset Backed
Credit Enhanced

Market Conditions

TEAC Series 2006A – 2026 bond

PACE Series 2008 – 2028 bond

Source: EMMA Trade Data

Market Conditions

Market Conditions

Recent Activity
Modifications involving existing prepayment transactions
Partial Downsize of TEAC’s 2006 transactions with J. Aron / Goldman
GIC Modifications in TEAC’s 2006 transactions with J. Aron / Goldman
RBC Restructurings

New Gas Prepayments
Status of Black Belt Energy prepayment with Noble Americas Gas & Power slated to close in 2015


Black Belt Energy Replacement of the Noble Americas transaction with a new RBC Prepayment transaction in 2016

The Future
Savings Expectations


Counterparties
Structures
Reserve Backed/Lower Rated/Non-Rated
Municipal Credit Risk Included in Transaction Rating

Questions and Open Discussion

THANK YOU APGA!