The New Terminal One at JFK concludes successful refinancing with $2 billion Green Bonds issuance

NEW YORK, Dec. 6, 2023 /PRNewswire/ -- The New Terminal One at New York John F. Kennedy International Airport has announced a successful $2 billion bonds issuance, following a strong reception from the investor community.

The Series 2023 Special Facilities Revenue Bonds were upsized by $500 million due to investor demand. This is a reflection of the market's confidence in the outlook for The New Terminal One, the developer and operator of a new international terminal at JFK. Assured Guaranty provided insurance on $800 million of the bonds. Underlining the project's commitment to sustainability, the bonds were designated as Green Bonds by Kestrel Verifiers, an independent second-party opinion provider, who confirmed that the uses of the bonds conform with Green Bond principles.

The New York Development Corporation acted as conduit issuer on behalf of The New Terminal One. Citi served as senior-managing underwriter on the transaction, with Loop Capital acting as co-senior manager. Ramirez & Co. served as New Terminal One's municipal and pricing advisor. 40% of the underwriting syndicate allocation are designated as minority and women-owned business enterprises (MWBEs), marking record participation for a New York municipal bond transaction.

"Our successful refinancing reflects a strong endorsement of our project by the capital markets, as The New Terminal One progresses on schedule and within budget. The transaction is in line with our continued efforts to de-risk the project and maintain our position of financial strength," said The New Terminal One President and CEO Dr. Gerrard P. Bushell.

"The record participation by MWBEs in the syndicate aligns with our overarching priority for diverse participation, ensuring that The New Terminal One continues to deliver impact to our community. We want to thank our public partners, the Port Authority of New York and New Jersey and the New York Transportation Development Corporation, and our financial sponsors Ferrovial, JLC Infrastructure, Ullico and Carlyle for their support as we work closely together to advance this once-in-a-generation project," said Dr. Bushell.

Proceeds from the bonds issue will be used to refinance part of the bank facility that was raised in June 2022 to finance the costs of The New Terminal One's Phase A, a $9 billion project that is the nation's largest public-private partnership. Construction of Phase A, with 14 widebody aircraft gates, is progressing on schedule towards an opening in June 2026. The erection of steel for the project's headhouse will be complete by the first quarter of 2024. Phase A will have more than 120,000 square feet of retail, dining and lounge space over a footprint of 1.7 million square feet.

When fully complete in 2030, the New Terminal One will be the largest international terminal at JFK, offering 23 gates and more than 300,000 square feet of retail, dining and lounge space over a total footprint of 2.4 million square feet.

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 $9 billion first phase is the largest single-asset project financing in US history.

The New Terminal One will be built on sites now occupied by Terminal 1, the recently closed Terminal 2, and the former Terminal 3, where it will anchor JFK's south side. Construction will take 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 2.4 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 will be built by union labor and is committed to local inclusion and labor participation, focusing on diversity and capacity-building opportunities, including ambitious goals for creating opportunities for local, minority, and women-owned business enterprises (MWBE), and service-disabled veteran-owned businesses (SDVOB).

To learn more about the New Terminal One at JFK International Airport, visit https://www.anewjfk.com/projects/the-new-terminal-one/.

SOURCE The New Terminal One