JAMAICA,
N.Y., June 27, 2024 /PRNewswire/ -- The New
Terminal One at John F. Kennedy
International Airport has successfully concluded a historic
$2.55 billion Green Bond issuance,
the largest ever municipal bond financing for an airport
project.
Proceeds from the 2024 Series bonds will be primarily used to
finance and refinance a portion of the costs of constructing the
initial phase of the New Terminal One development, a portion of
which were initially funded with the bank facility that was raised
in June 2022.
The Series 2024 Special Facilities Revenue Bonds were initially
marketed at $1.5 billion. Due to
investor demand indicated during pre-marketing and then
demonstrated during the order period, the issuance was ultimately
upsized to $2.55 billion. This
outcome re-affirms investor confidence in the much-anticipated New
Terminal One project.
The New Terminal One is a key component of the Port Authority of
New York and New Jersey's $19
billion transformation of JFK Airport into a world-class
gateway, with two new terminals, two expanded and modernized
terminals, a new ground transportation center and an entirely new,
simplified roadway network. Scheduled to open in 2026, the
privately funded New Terminal One is backed by a consortium of
financial, operating, and labor partners: Ferrovial, JLC
Infrastructure, Ullico and Carlyle.
"Our continued success in refinancing through this landmark bond
issuance demonstrates the confidence of the capital markets in The
New Terminal One and our progress in delivering a new gateway for
New York and our nation," said The
New Terminal One Chief Executive Officer Jennifer Aument. "This refinancing re-affirms
our commitment to maintaining The New Terminal One's position of
financial strength, as we gather momentum towards our scheduled
opening in 2026."
The New York Transportation Development Corporation acted as
conduit issuer of the Series 2024 bonds on behalf of The New
Terminal One. BofA Securities and Loop Capital Markets acted as
joint bookrunners, with Barclays acting as co-senior manager. The
bonds were designated as Green Bonds by Kestrel Verifiers, an
independent second-party opinion provider that confirmed that the
uses of the bonds conform with Green Bond principles. Ramirez &
Co. served as New Terminal One's municipal and pricing advisor.
Assured Guaranty provided insurance on $800
million of the bonds.
This 2024 Issuance allocated 40% of the underwriting syndicate
to designated minority and women-owned business enterprises
(MWBEs), continuing NTO's commitment to record levels of MWBE
participation in its bond transactions.
"The record participation by MWBEs in all areas of this
transaction (joint book runner, co-managers, financial advisors,
and counsel) aligns with our core commitment to diverse
participation across all aspects of The New Terminal One, ensuring
that we continue to deliver impact to our community," said The New
Terminal One Chief Financial Officer Manoj
Patel.
The New Terminal One finance team, led by Patel and Director of
Financial Planning, Analysis and Strategy Bryan Rowan, worked with
the New Terminal One's sponsors, bankers, attorneys and advisors to
execute this historic bond issuance. The decision to upsize the
bond offering enabled The New Terminal One to capitalize on an
improving debt market and significantly de-risk the program at
attractive rates.
With a capital commitment of $9.5
billion, The New Terminal One is the country's largest
public-private partnership and the largest single-asset project
financing in US history.
The New Terminal One's Phase A will comprise a headhouse and 14
widebody aircraft gates. The project topped off in March 2024, with the placement of the steel beam
marking the development's highest point. Installation of the
headhouse's curtain wall and key infrastructure systems commenced
earlier this year and work is underway to make the building
weather-tight.
Scheduled for full completion in 2030, the New Terminal One will
offer a total of 23 gates in a 2.6 million square feet facility
over a 133-acre footprint. It will replace the existing Terminal 1
and the former Terminals 2 and 3 and will handle anticipated annual
traffic of more than 16 million passengers in 2030 – about
three times the number of passengers handled by the existing
Terminal 1 in 2023.
About The New Terminal One
The New Terminal One (NTO) at John F. Kennedy International Airport is a bold and
exciting project to develop a world-class international terminal
that will serve as an anchor terminal in the Port Authority's
$19 billion transformation of JFK
into a global gateway to the New
York metropolitan area and the
United States. NTO will set a new standard for design and
service, aspiring to obtain a Top 5 Skytrax ranking and be
considered one of the finest airport terminals in the world.
The New Terminal One is being built on sites now occupied by
Terminal 1 and the former Terminal 2 and Terminal 3, where it will
anchor JFK's south side. Construction is taking place in phases.
The first phase, including the new arrivals and departures halls
and first set of 14 new gates, is expected to open in 2026. At
completion, anticipated in 2030, the New Terminal One will be 2.6
million square feet, making it the largest terminal at JFK and
nearly the same size as LaGuardia Airport's two new terminals
combined.
NTO will be a 23-gate, state-of-the-art, international-only
terminal. Sustainably designed and future-focused, the terminal
will feature expansive, naturally lit public spaces, cutting-edge
technology, and an array of amenities, all designed to enhance the
customer experience and compete with some of the highest-rated
airport terminals in the world.
The New Terminal One consortium of labor, operating, and
financial partners is led by Ferrovial, JLC Infrastructure, Ullico,
and Carlyle. NTO is being built by union labor and we are committed
to local inclusion and labor participation, focusing on diversity
and capacity-building opportunities, including ambitious
participation goals of 30% for minority and women-owned
enterprises, 10% for local business enterprises and 3% for
service-disabled veteran-owned businesses.
To learn more about the New Terminal One at JFK International
Airport, visit
https://www.anewjfk.com/projects/the-new-terminal-one/
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SOURCE The New Terminal One at JFK