KBRA Assigns BBB- Ratings to JFK NTO LLC’s $2.55 Billion Special Facilities Revenue Bonds and Affirms Existing Ratings
June 27 2024 - 6:26PM
Business Wire
KBRA assigns its BBB- ratings to JFK NTO LLC’s $2.55 billion
special facilities revenue bonds (series 2024 bonds) and affirms
the existing ratings associated with JFK NTO LLC’s senior secured
facilities for Phase A of the Terminal One redevelopment project,
also called New Terminal One (NTO), at New York’s John F. Kennedy
International Airport (JFK). A portion of the series 2024 bonds
($800 million) benefit from a financial guaranty policy issued by
Assured Guaranty Municipal Corp., which has a KBRA rating of AA+.
The Outlook is Stable. The financing plan originally consisted of a
single five-year term loan with two tranches totaling $6.33
billion, along with a $200 million liquidity facility, a $50
million working capital facility, and a $50 million security
deposit facility to be borrowed by the New York Transportation
Development Corporation, a local development corporation, as
conduit issuer, and subsequently on-lent to JFK NTO LLC (the
borrower). Funding also includes $2.33 billion of sponsor equity
(backed by letters of credit). Together with other available
sources, the series 2024 bond proceeds will be used for Phase A
project costs ($2.3 billion), a deposit to capitalized interest
accounts ($305.8 million), and to repay bank loans ($253.4
million).
This design-build-finance-operate-and-maintain project at
Terminal One—JFK’s only exclusively international terminal—is the
largest terminal redevelopment effort within a wider redevelopment
plan for the airport. The project operates under a lease agreement
through December 30, 2060, with the Port Authority of New York and
New Jersey (PANYNJ).
A design-build (DB) agreement has been executed with Tishman
Construction Corporation of New York (the DB Contractor) for Phase
A of NTO, which encompasses a $5.7 billion brownfield development
of a new Terminal One on the sites of the Former Terminals Two and
Three and the former Green Garage. Phase A of NTO will provide a
1.8 million-sf terminal with 13 widebody contact gates and one
temporary widebody gate. The construction plan has been designed to
minimize disruptions and allow Existing Terminal 1 to continue to
operate through completion of Phase A in 2026.
The borrower will manage NTO in conjunction with Ferrovial
Airports US Operation and Management Services LLC (Ferrovial
Airports), which will provide consulting, technical services, and
staff training before and after the date of beneficial occupancy
(DBO). The project is led by a consortium formed by Ferrovial,
Carlyle, JLC Infrastructure, and Ullico (collectively, the
sponsors).
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- Project Finance & Infrastructure: Project Finance Global
Rating Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004873
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Analytical Contacts
Adeeti Amin, Senior Director (Lead Analyst) +1 646-731-2332
adeeti.amin@kbra.com
Maria de Urquijo, Senior Director +1 646-731-3348
maria.deurquijo@kbra.com
Justin Huynh, Director +1 646-731-1267 justin.huynh@kbra.com
Andrew Lin, Senior Director (Rating Committee Chair) +1
646-731-2483 andrew.lin@kbra.com
Business Development Contacts
Rosemary Kelley, Senior Managing Director, Head of Structured
Finance and Project Finance +1 646-731-2337
rosemary.kelley@kbra.com
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com