Success doesn't come to you, you go to it. ~ Marva Collins Identify your problems but give your power and energy to solutions. ~ Tony Robbins If you are not willing to risk the unusual, you will have to settle for the ordinary. ~ Jim Rohn

1. THE HONOLULU RAIL
HONOLULU AUTHORITY FOR RAPID TRANSPORTATION (HART)
ANSALDO HONOLULU – A HITACHI GROUP JV
UNDERCAPITALIZATION
HONOLULU RAIL TRANSIT PROJECT P3 ASSESSMENT – 2017
P3 APPROACH – 2018
FINANCIAL CLIMATE
UNDERCAPITALIZATION
Having sufcient working capital enables a company to sail through rough
seas and concentrate on steering out of the storm rather than fghting the
storm itself.
Source: The Risk of Undercapitalization By Toby Dahm. Hitachi Business
Finance, fnancial partner of Hitachi Global. February 22, 2010, accessed
September 27, 2018 https://www.hitachibusinessfnance.com/business-tips-tactics/the-risk-
of-undercapitalization/
Without sufcient capitalization, companies are unprepared to ride out
slow periods in the business cycle, or to fend of a new competitor, or to
work through any number of shocks that bufet all businesses from time to
time.
In order to avoid future problems with undercapitalization, entrepreneurs
need to perform a realistic assessment of their expenses and fnancial
needs. [Emphasis Supplied]
Source: Undercapitalization INC. 500 Conference. Accessed September 27, 2018
https://www.inc.com/encyclopedia/undercapitalization.html
P3 – 2017 ASSESSMENT
Federal, state and local governments have limited fnancial resources to devote
to capital and operational expenditures.

2. In post-earmark Washington, intense competition for scarce federal funding,
coupled with a growing backlog of authorized, but unfunded projects.
Protracted appropriations delay delivery and exponentially increase costs.
Public authorities seek to extract value from existing assets
Key P3 & Alternative Finance Drivers
• Access to new sources of fnancing / Accelerated delivery of infrastructure
• Monetization opportunities
• Life-cycle cost reduction / Operational efciencies
• Risk allocation and incentivized performance
Source: Honolulu Rail Transit Project P3 Viability Assessment Ulupono Initiative and
JLL. March 20, 2017, accessed September 27, 2018
http://ulupono.com/media/W1siZiIsIjIwMTcvMDMvMjAvMTlfMzZfMDFfMTU2X0pMTF9Ib25vbHVsdV9SYWlsX1AzX0ZpbmFsX1JlcG9ydF9GSU5BTF8y
MDE3XzNfMjAucGRmIl1d/JLL%20Honolulu%20Rail%20P3%20Final%20Report_FINAL%202017-3-20.pdf?sha=710d593b
P3 APPROACH - 2018
Debt vs. Equity Financing Arrangements
Forbes August 19, 2018
https://www.forbes.com/sites/alejandrocremades/2018/08/19/debt-vs-equity-fnancinpros-and-cons-for-
entrepreneurs/#49933a8e6900
National Federation of Independent Business (NFIB) June 20, 2017
https://www.nfb.com/content/resources/money/ital-50036/
NOTABLE PROVEN FINANCIAL ARRANGEMENTS
ALEXANDER & BALDWIN
June 7, 2012, accessed September 27, 2018
http://investors.alexanderbaldwin.com/news-releases/news-release-details/alexander-baldwin-fnalizes-post-separation-fnancing

3. Alexander & Baldwin Holdings, Inc. (NYSE: ALEX) (“Company”), successor by
merger to Alexander & Baldwin, Inc., today announced that, in connection
with previously announced plans to separate its transportation and land
businesses into two publicly traded companies, it has entered into new
fnancing arrangements for the land business (“New A&B”). The new fnancing
arrangements will provide signifcant liquidity and support New A&B in the
execution of its growth strategies as a stand-alone company and complement
separately announced fnancing arrangements that have been made for Matson
Navigation Company, Inc. The New A&B fnancing arrangements consist of: (1)
a new $260 million unsecured revolving senior credit facility with a syndicate
of banks, including an option to increase available capacity up to an additional
$90 million; and (2) a replenishing $300 million, three-year unsecured note
purchase and private shelf agreement, including a renewal or replacement of
$207 million of existing unsecured notes with Prudential Investment
Management, Inc. and its afliates (collectively, “Prudential”).
Bank of America, N.A. served as administrative agent, and Merrill Lynch,
Pierce, Fenner & Smith Incorporated and First Hawaiian Bank served as joint
lead arrangers of the new unsecured senior credit facility, whose lending group
also includes Wells Fargo Bank, American AgCredit PCA, Bank of Hawaii,
American Savings Bank and Central Pacifc Bank.
MATSON
June 7, 2012, accessed September 27, 2018
https://investor.matson.com/news-releases/news-release-details/matson-fnalizes-post-separation-fnancing-arrangements
Matson Finalizes Post-Separation Financing ArrangementsAlexander & Baldwin
Holdings, Inc.(NYSE: ALEX), successor by merger to Alexander & Baldwin,
Inc., today announced that its wholly-owned subsidiary, Matson Navigation
Company, Inc. ("Matson Navigation"), has entered into a series of debt
fnancing agreements undertaken on behalf of Matson, Inc. ("Matson") as part of
the previously announced plan to separate the Company's transportation and
land businesses into two publicly traded companies.
Subject to fnal approval by the Alexander & Baldwin Holdings, Inc. Board of
Directors, the separation remains on track for completion early in the third
quarter of this year or as early as the end of the second quarter.

4. The new $375 million unsecured revolving senior credit facility with a
syndicate of banks has an option to increase the facility's capacity by another
$75 million. The facility has a fve-year term maturing in June 2017, with an
initial stated interest rate of London Interbank Ofered Rate (LIBOR) plus 1.5
percent. Matson anticipates that approximately $75 million will be drawn from
the new credit facility immediately following the separation. Bank of America,
N.A. served as administrative agent, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated and First Hawaiian Bank served as joint lead arrangers for the
revolving credit facility.
_____________________________________________________
FINANCIAL CLIMATE
MOODY'S INVESTORS SERVICE
August 07, 2018
https://m.moodys.com/research/Moodys-assigns-Aa1-ratings-to-Honolulu-HIs-GO-Bonds-Series--PR_904722986
Moody's Investors Service has assigned Aa1 ratings to the City and County of
Honolulu. Moody's outlook on Honolulu's long-term ratings is stable. The stable
outlook refects the city's healthy economy and our expectation that the city
will maintain solid reserve levels while continuing to make planned progress in
funding its pension and OPEB liabilities. The outlook also incorporates our view
on challenges related to construction of the light rail.
FITCH RATINGS
07 August 2018
https://www-origin.ftchratings.com/site/pr/10039099
Fitch Ratings has assigned a 'AA+' rating to the following City and County of
Honolulu. The 'AA+' IDR refects the city's strong revenue framework,
afordable long term liabilities, and robust operating performance.
DRIVE FOR SUCCESS – GO FOR IT
REALISTIC, ACCURATE ASSESSMENT OF EXPENDITURES AND COSTS
ALEXANDER & BALDWIN AND MATSON FINANCIAL MODELS