Assured Guaranty Municipal Corp, (AGM) a subsidiary of Bermudian-based Assured Guaranty Ltd., has for the second time, insured $800 million of senior Special Facilities Revenue Bonds issued by the New York Transportation Development Corporation on behalf of JFK New Terminal One, a consortium comprising Ferrovial Airports, JLC Infrastructure, Ullico Infrastructure Fund and Carlyle Group.
Following a successful, similar bond issuance last December, the insured bonds were issued on June 27 as part of a $2.55 billion Series 2024 issue of fixed-rate bonds.
As a result, this increases AGM-insured bonds to an aggregate of $1.6 billion out of the $4.55 billion of bonds issued to date by JFK NTO.
The bonds were designated as Green Bonds by independent second-party opinion provider, Kestrel Verifiers, who confirmed that the uses of the bonds conform with Green Bond principles. Ramirez & Co. served as New Terminal One’s municipal and pricing advisor.
From what we understand, proceeds from the 2024 Series bonds will primarily be 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 a bank facility that was raised in June 2022.
Lorne Potash, Managing Director, Infrastructure Finance, Americas commented: “For the second time in less than seven months, Assured Guaranty’s bond insurance on $800 million of bonds once again helped the issuer achieve a highly successful execution. The 2023 and 2024 insured issues together represent the largest commitment Assured Guaranty has to a single public-private partnership credit. We are the only bond insurer with the experience, scale and financial strength to provide meaningful cost savings for issues of this size and complexity.”
Sam Nakhleh, Director, Infrastructure Finance, Americas, said: “JFK NTO is the largest public-private partnership transportation project in the United States, and we are pleased to be a part of the team that brought this investment grade and highly essential project to its second successful bond execution.”
It has been confirmed that the bonds will be fully amortizing after an initial interest-only period, with a final maturity in 2060.
AGM insured $14,290,000 of serial bonds due 2039; $32,715,000 of serial bonds due 2042; $145,000,000 of term bonds due 2049; $184,845,000 and $48,150,000 of term bonds due in 2054; and $375,000,000 of term bonds due 2060.
It is important to note, that the New Terminal One is a major component of the Port Authority of New York and New Jersey’s $19 billion transformation of JFK Airport into a world-class gateway, which will include two new terminals, two expanded and modernised terminals, a new ground transportation center and a new roadway network.
The New Terminal One is currently scheduled to open in 2026.
Moreover, the New York Transportation Development Corporation acted as conduit issuer of the Series 2024 bonds on behalf of The New Terminal One.
While BofA Securities and Loop Capital Markets acted as joint bookrunners, with Barclays acting as co-senior manager.
The New Terminal One Chief Executive Officer Jennifer Aument, said: “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. 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 Terminal One Chief Financial Officer Manoj Patel, added: “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.”
