KBRA Assigns BBB- Ratings to JFK NTO LLC’s $2.55 Billion Special Facilities Revenue Bonds and Affirms Existing Ratings
KBRA has assigned BBB- ratings to JFK NTO LLC’s $2.55 billion series 2024 special facilities revenue bonds. Additionally, KBRA has affirmed the existing ratings associated with JFK NTO LLC’s senior secured facilities for Phase A of the Terminal One redevelopment project, also known as New Terminal One (NTO), at New York’s John F. Kennedy International Airport (JFK). Notably, $800 million of the series 2024 bonds benefit from a financial guaranty policy issued by Assured Guaranty Municipal Corp., which holds a KBRA rating of AA+. The Outlook remains Stable.
The financing plan originally included a single five-year term loan comprising 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. These funds were borrowed by the New York Transportation Development Corporation as the conduit issuer and subsequently on-lent to JFK NTO LLC. Additionally, $2.33 billion in sponsor equity, backed by letters of credit, was secured.
Proceeds from the series 2024 bonds, alongside other available sources, will finance Phase A project costs amounting to $2.3 billion, capitalize interest accounts with $305.8 million, and repay bank loans totaling $253.4 million.
This project involves a design-build-finance-operate-and-maintain approach at Terminal One, JFK’s sole international terminal, and represents the largest terminal redevelopment within JFK’s broader airport renovation initiative. Under a lease agreement with the Port Authority of New York and New Jersey (PANYNJ) running until December 30, 2060, the project will transform former Terminal Two and Three sites and the former Green Garage into a new 1.8 million-square-foot Terminal One. This phase will provide 13 widebody contact gates and one temporary widebody gate. Construction is designed to minimize disruptions, allowing Existing Terminal 1 to remain operational until Phase A’s completion in 2026.
Ferrovial Airports US Operation and Management Services LLC (Ferrovial Airports) will assist JFK NTO LLC in managing NTO, offering consulting, technical services, and staff training pre- and post-date of beneficial occupancy (DBO). The project consortium, comprising Ferrovial, Carlyle, JLC Infrastructure, and Ullico, leads the initiative.
