Investor Presentation

$41,750,000* Authority for Industrial Development Revenue Bonds, Series 2017

* Preliminary, subject to change. Disclaimer

This investor presentation that you are about to view is provided as of November 8, 2017 for a proposed offering of the Philadelphia Authority for Industrial Development, La Salle University Revenue Bonds, Series 2017, (the “Series 2017 Bonds”). This presentation has been prepared for information purposes only and for your sole and exclusive use in connection with the proposed transaction. The information contained herein is subject to completion and amendment. Any offer or solicitation with respect to the Series 2017 Bonds will be made by means of a final official statement. If you are viewing this investor presentation after the date stated above, events may have occurred that have a material adverse effect on the financial information presented.

This presentation does not constitute nor does it form part of an offer to sell or purchase, or the solicitation of an offer to sell or purchase, any securities or an offer or recommendation to enter into any transaction described herein; nor does this presentation constitute an offer, commitment or obligation on the part of the issuer, the underwriter or any of their affiliates to provide, issue, arrange or underwrite any financing or enter into any other transaction. You will be responsible for making your own independent investigation and appraisal of the risks, benefits, appropriateness and suitability of the proposed transaction and any other transactions contemplated by this presentation and neither the issuer nor the underwriter are making any recommendation (personal or otherwise) or giving any investment advice and will have no liability with respect thereto.

Neither the issuer nor the underwriter make a representation or warranty as to the (i) accuracy, adequacy or completeness of any information in this investor presentation or (ii) legal, tax or accounting treatment of any purchase of the Series 2017 Bonds by you or any other effects such purchase may have on you and your affiliates.

This investor presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results may differ materially from those expressed or implied by such forward-looking statements. Accordingly, we caution you not to place undue reliance on these statements. All statements other than the statements of historical fact could be deemed forward-looking. All opinions, estimates, projections, forecasts and valuations are preliminary, indicative and are subject to change without notice.

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La Salle University| Investor Presentation 1 Transaction Overview

Issuer: Philadelphia Authority for Industrial Development Obligor: La Salle University Series: Series 2017 Par Amount: $41,750,000* Current refunding of the Series 2007A Bonds, advance refunding of a portion of the Series Use of Proceeds: 2012 Bonds, pay for various capital projects on the University’s Main Campus, West Campus and South Campus and pay costs of issuance of the bonds Maturities*: Serial Bonds: 5/1/22 – 5/1/37; Term Bond: 5/1/42 First Optional Redemption*: 11/1/2027 at Par Tax Status: Federal and Pennsylvania Tax-Exempt Ratings ( Standard & Poor’s / Fitch ): BBB- (stable) / BBB (negative) General obligation of the University secured by a lien on and security interest in the Security: unrestricted gross revenues of the University Interest Payment Dates: May 1 and November 1 beginning May 1, 2018 Expected Pricing Date: November 16, 2017* Expected Closing Date: November 29, 2017* Underwriter: BofA Merrill Lynch

*Preliminary; Subject to change La Salle University| Investor Presentation 2 La Salle University Overview

. La Salle University (“La Salle” or the “University”) is a Catholic Lasallian co-educational, independent institution, founded in 1863 in Philadelphia, Pennsylvania by the Institute of the Brothers of the Christian Schools.

. Located approximately 10 miles north of Center City Philadelphia on a 133-acre parcel of land, La Salle’s main campus contains approximately 66 buildings and 12 acres of woods and gardens, as well as the restored 18th century home of American portrait painter, Charles Wilson Peale.

. The University has approximately 5,200 students, including 3,100 full-time undergraduates (53% of whom are resident students), 673 evening (part-time) undergraduates and approximately 1,376 graduate and doctorate students. Class size averages 20 students, and the student-faculty ratio is 12-to-1.

. The University fields twenty-five NCAA Division I sports teams, eleven for men and fourteen for women. More than 500 undergraduates participate in intercollegiate varsity sports and more than 1,000 participate in intramural sports at La Salle.

. La Salle is one of six Lasallian colleges and universities in the United States, and one of 62 globally. La Salle is the second oldest Lasallian higher education institution in the world and has more than 66,000 alumni.

La Salle University| Investor Presentation 3 University Campus & Facilities

. The University occupies a 133-acre main campus with approximately 66 buildings in the vicinity of 20th Street and Olney Avenue in the City of Philadelphia, Pennsylvania.

. On the main campus are five classroom buildings (including a state-of-the-art Communications Center), a dormitory/dining hall complex, 12 residence halls, three houses, two apartment complexes and a 75- unit townhouse complex, Connelly Library with an area of 100,000 square feet, the Student Union and the Independence Blue Cross Fitness Center.

. Also located on campus is TruMark Financial Center which houses the 3,400 seat Arena, as well as a swimming pool with diving well, basketball courts, an indoor track, a sauna and other facilities.

. In 2009, the 83,000-square-foot Holroyd Hall, was expanded by 38,000 square feet to include laboratories, classrooms, and lounges with an environmentally friendly design.

. In 2016, a 78,600 square foot state-of-the-art Business School was opened and now connects the School’s various programs around a four-story-high atrium connected by classrooms, student lounges, faculty offices, group study rooms, events spaces, a Center for Entrepreneurship and La Salle’s Non-Profit Center.

La Salle University| Investor Presentation 4 Recent Strategic Developments . Strategic Plan - Momentum 2022

o Ensure a sustainable community o Foster the University’s premier student learning experience o Transform the University’s environment o Cultivate the University’s community of world class colleagues o Share the University’s unique story Examples of early outcomes including the following: . A Bold Move in College Affordability

o Undergraduate tuition at the University was reduced by 29% to broaden market reach and address the national challenge of college accessibility and affordability.

o Financial aid was also reduced as part of the long term strategy of increasing enrollment while at the same time increasing net tuition revenue on a per student basis.

o Increased awareness of La Salle nationwide, positioned the University as a leader in college affordability, and served as a helpful tool for recruitment efforts. . Prioritizing for Sustainability and Mission

o La Salle faculty and staff evaluated more than 300 academic and operational programs to promote alignment among the University’s programs, resources, and mission

o The University suspended entry into forty underperforming academic programs including six undergraduate majors and over thirty graduate programs, tracks, and concentrations. Faculty, Staff and Governance . The University has approximately 706 full-time and 40 part-time employees:

o There are currently 223 full-time faculty, approximately 58% of whom were tenured; 80% of all full-time faculty positions are tenure track

o The Board of Trustees consists of not more than forty members, no fewer than eight of whom are required to be Brothers of the Christian Schools or other persons recommended as having particularly strong Lasallian experience

La Salle University| Investor Presentation 5 Academic Programs

. The University is comprised of the three schools illustrated in the following schematic that provide the academic programs described below.

. All three schools offer full-time undergraduate programs, part-time evening undergraduate programs, part-time Master’s, and Master’s programs. . The School of Arts and Sciences offers an Associate of Arts degree in liberal arts in 14 different programs and masters degrees in 14 programs as well as a doctorate in Psychology. School of Arts . The School of Business offers a Bachelor of Science degree in seven programs. In and Sciences addition, the School of Business offers a business scholars program for undergraduates who wish to participate in cooperative education while still graduating in four years.

School of o The School of Business also offers a Master’s in Business Administration for both La Salle Nursing and full and part-time students including a hybrid and fully online MBA, as well as University Health housing a Nonprofit Center on the Main Campus. Sciences . The School of Nursing and Health Sciences offers a full-time program leading to the Bachelor of Science (BS) degree in Nursing (pre-licensure), a BS degree in nutrition, a BS degree in Communication Sciences and Disorders, and a BS degree in Public Health. School of Business o The School of Nursing and Health Sciences also offers a part-time Bachelor of Science in nursing degree completion program for RNs with diploma or associate degree credentials.

La Salle University| Investor Presentation 6 Student Enrollment Information Student Enrollment Data Fall 2013 Fall 2014 Fall 2015 Fall 2016 Fall 2017 Undergraduate headcount 4,409 4,322 3,947 3,652 3,821 Undergraduate FTE 4,031 3,998 3,692 3,447 3,605 Full-time undergraduates FTE 3,542 3,583 3,354 3,181 3,322 Part-time undergraduates FTE 489 415 338 266 283 Graduate headcount 1,879 1,762 1,555 1,370 1,218 Doctorate Headcount 148 158 173 175 158 Non-degree Headcount 12 13 8 18 13 Graduate FTE 1,200 1,140 1,028 923 825 Total headcount enrollment 6,448 6,255 5,683 5,215 5,210 Total FTE enrollment 5,231 5,138 4,720 4,370 4,430

. As a result of the many new enrollment and marketing initiatives, La Salle experienced an 11.5% increase in freshmen enrollment for Fall 2016 and an 18% increase in freshmen enrollment for Fall 2017. . Undergraduate day freshmen enrollment for the 2017-18 academic year is 932 students, exceeding its growth target of 885, representing one of the largest classes in the last 30 years. The number of applications was also a record high, with over 6,700 applications received. Student Demand Information Freshman and Transfer Applications Admissions Fall 2013 Fall 2014 Fall 2015 Fall 2016 Fall 2017 Freshman Applications 5,807 6,080 5,997 5,782 6,704 Freshman Acceptances 4,370 4,423 4,381 4,253 5,060 Freshman Acceptance Ratio 75% 73% 73% 74% 75% Freshman Enrollment 876 867 708 790 932 Enrollment Yield 20% 20% 16% 19% 18% Transfer Matriculants 148 126 116 117 139 Retention Rato 82% 81% 78% 75% 77%

La Salle University| Investor Presentation 7 Tuition and Fees . La Salle made the decision to implement a significant tuition reduction effective September 2017. . The 29% tuition decrease also was a strategic move which broadened the University’s market reach and made La Salle competitive with state universities located within and outside of Pennsylvania.

$60,000 $12,070 $12,560 $13,060 $13,580 $40,000 $13,976

$20,000 $38,200 $39,800 $41,100 $41,100 $29,600 $0 2012-13 2013-14 2014-15 2015-16 2016-17

Tuition and Mandatory Fees Room and Board Sources of Undergraduate Student Financial Aid . Financial aid was also reduced beginning with the 2017-18 academic year as part of the long term strategy of increasing enrollment while at the same time increasing net tuition revenue on a per student basis . In conjunction with the tuition reduction effective September 2017, the University’s institutional aid will also decrease by approximately 41% or $42 million compared to the prior year.

$150 $4.5 $4.5 $8.8 $10.6 $4.9 $9.6 $4.5 $8.5 $4.7 $8.4 Millions $100 $52.4 $48.2 $44.3 $48.8 $49.4 $2.0 $2.0 $3 $2.0 $2.3 $50 $61.9 $65.7 $70.9 $70.4 $72.4

$0 2012-13 2013-14 2014-15 2015-16 2016-17

University Aid Private Assistance(3) Federal Loans(2) Federal Programs(1) State Grants(4) Notes: (1) Totals include Pell grants, Supplemental Educations Opportunity Grant Program, University Work Study Program, Perkins Loan Program, and all other Federal Programs. (2) Totals include subsidized and unsubsidized Stafford Loans, PLUS Loans, and Direct Loans. (3) Totals include Endowment, Gift and other funded scholarships. La Salle University| Investor Presentation 8 (4) Totals include Pennsylvania’s Higher Education Assistance Agency grants (PHEAA), Institutional Assistance Grants, other state programs and indirect recoveries. Historical Operating Results

. The following pie charts show the sources of the University’s operating revenues and operating expenses for FY 2017.(1)

Operating Revenues Operating Expenses

Net tuition and fees Instruction

Grant and Contract Income Research Private Gifts Academic Support Activities Related to Academic Areas Auxiliary Enterprises Student Services and Athletics Dividend and Interest Public Service Income Use of Endowment Resources Institutional Administrative and Other supporting services Revenues Net Assets Released from Auxiliary Restrictions Enterprises

. The following table reflects total operating revenue and total operating expenses of the University for the fiscal years ended May 31, 2013 through 2017.

Historical Operating Results 2012-13 2013-14 2014-15 2015-16 2016-17 Unrestricted operating revenue $125,352,776 $131,408,589 $131,702,886 $123,881,341 $116,374,398 Less: Unrestricted operating expense -118,273,531 -124,765,120 -129,711,576 -123,030,735 -111,444,702 Unrestricted operating surplus $7,079,245 $6,643,469 $1,991,310 $850,606 $4,929,696 Plus: depreciation and interest expense 12,132,343 12,942,468 12,777,563 13,194,476 13,788,733 Unrestricted operating surplus available for debt service $19,211,588 $19,585,937 $14,768,873 $14,045,082 $18,718,429

(1) Totals may not foot due to rounding. La Salle University| Investor Presentation 9 Expendable Net Assets

$140 $120 $117 $120 $115 $120 $104

Millions $100 $77 $69 $69 $80 $64 $62 $51 $60 $51 $35 $40 $58 $40

$20

$0 2013 2014 2015 2016 2017

Total Net Assets Liabilitites Expendable Net Assets

Endowment and Other Net Assets

$100 $89.0 $88.3 $86.1 $90 $82.4 $82.5

Millions $80 $70 $60 $50 $40 $30 $20 $10 $0 2013 2014 2015 2016 2017

Endowment Quasi-Endowment Other* Total

* Excludes endowed pledges La Salle University| Investor Presentation 10 Fundraising . The following table reflects total gifts, grants, and bequests to the University’s for fiscal years ended May 31, 2013 through 2017.

Annual Fundraising (Cash Received) 2012-13 2013-14 2014-15 2015-16 2016-17 Unrestricted Support $2,234,115 $2,332,893 $2,029,480 $1,928,175 $2,517,022 Restricted Support 1,551,660 2,281,543 5,190,414 5,423,755 4,639,999 Grants and Contracts Support 4,488,018 2,861,808 3,778,801 2,416,824 1,953,794 Shoulder to Shoulder 95,750 81,000 56,000 45,000 50,000 School of Business 1,593,212 2,634,562 2,537,425 2,409,059 1,254,653 Total Fundraising $9,962,755 $10,191,806 $13,592,120 $12,368,359 $10,415,468

. The Annual Fund at La Salle plays a crucial role in raising unrestricted funds for the University as well as providing key opportunities to engage its alumni, parents, students, faculty/staff and friends.

. The Vice President of Advancement is currently developing a comprehensive fundraising plan with the University Advancement Committee of the Board of Trustees. The plan will be guided by the newly adopted strategic plan, Momentum 2022.

. A “quiet” phase launch is tentatively scheduled for June 2018.

La Salle University| Investor Presentation 11 Preliminary Sources & Uses and Debt Service by Fiscal Year for 2017 Bonds*

Estimated Series 2017 Sources & Uses La Salle University Pro Forma Debt Service Sources Series 2012 Citizens Bank Loan Series 2017 Par Amount $41,750,000 Estimated Aggregate Premium 2,045,475 Fiscal Year Debt Service Debt Service Debt Service Debt Service Existing DSRF 4,132,736 2018 3,057,800 507,915 818,283 4,383,998 Existing DSF 5,563 2019 5,147,100 1,024,065 1,938,038 8,109,203 Total $47,933,774 2020 5,146,100 1,035,380 1,938,038 8,119,518 2021 5,147,600 5,878,643 1,938,038 12,964,280 Uses 2022 5,151,350 3,903,038 9,054,388 New Money $5,500,000 2023 5,260,800 3,789,788 9,050,588 Refunding 41,837,661 2024 5,375,900 3,677,288 9,053,188 Costs of Issuance 596,112 2025 5,486,650 3,570,538 9,057,188 Total $47,933,774 2026 5,598,150 3,459,288 9,057,438 2027 5,704,900 3,348,788 9,053,688 Capital Spending Plan 2028 5,821,650 3,229,038 9,050,688 2029 5,927,400 3,125,538 9,052,938 . The projects to be financed with the proceeds of the Series 2017 2030 6,032,150 3,052,538 9,084,688 Bonds include (1) the renovation and infrastructure 2031 6,137,750 3,051,438 9,189,188 improvements of student residences, library, academic and 2032 6,244,750 3,054,438 9,299,188 administrative buildings on the University’s campus, (2) the 2033 6,352,750 3,052,438 9,405,188 renovation and construction of recreational facilities located on 2034 6,457,250 3,050,438 9,507,688 the University’s campus, (3) renovations, additions, capital 2035 6,563,000 3,051,250 9,614,250 repairs and miscellaneous technology improvements to the 2036 6,664,250 3,049,750 9,714,000 University’s campus, and (4) other miscellaneous capital projects 2037 6,770,500 3,052,500 9,823,000 on the University’s campus. 2038 8,985,750 1,989,000 10,974,750 2039 8,988,750 1,988,600 10,977,350 . The University has no plans to incur additional long-term debt for 2040 8,989,000 1,990,600 10,979,600 any planned capital projects in the near future. 2041 8,990,750 1,984,800 10,975,550 2042 8,988,000 1,986,400 10,974,400 Totals 158,990,050 8,446,003 69,089,883 236,525,936

*All numbers are preliminary; subject to change La Salle University| Investor Presentation 12 Key Dates and Contacts November S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Financing Schedule

November 16, 2017* Series 2017 Bond Pricing November 29, 2017* Series 2017 Closing Date

Underwriter Financial Advisor BofA Merrill Lynch

Adam Gentzel Ted Matozzo Paul Clancy

Director Vice President Director [email protected] [email protected] [email protected] (215) 446-7027 (215) 446-7019 (215) 832-1518

Matt Hage

Vice President [email protected] (212) 449-5081

* Preliminary; Subject to change La Salle University| Investor Presentation 13