Financial details on JFK’s Terminal 6


The $3.4 billion debt package comprising a non-recourse construction facility and tax-exempt bond was used to bring New York's John F Kennedy International Airport, Terminal 6 project to financial close last week, with 6 banks acting as coordinated lead arrangers and joint bookrunners.

The 6 banks were:

  • ING
  • KeyBank
  • MUFG
  • SMBC
  • Scotiabank
  • Standard Chartered

ING and SMBC were the syndication lead banks.

The construction financing was split into:

  • $3 billion, 7-year senior secured construction term loan
  • $435 million, 7-year series 2022A tax-exempt bond

The loan was priced in the high 200bp range at financial close last week. The series 2022A tax-exempt bond was provided by RBC.

Other roles on the debt package were:

  • Bank of China NY – senior joint lead arranger
  • JP Morgan, Mizuho – joint lead arrangers
  • ICBC NY, LandesBank NY – mandated lead arrangers
  • Siemens Financial Services – senior managing agent

JFK Millennium Partners (JMP), the consortium charged with redeveloping Terminal 6 at JFK comprises:

  • JetBlue Airways
  • Vantage Airport Group
  • American Triple I (ATI)
  • RXR Realty

In August (2022), IJGlobal had reported the JPM consortium was targeting a financial close using non-recourse debt.

The development – in conjunction with airline operator JetBlue – was greenlighted by New York State and the Port Authority of New York and New Jersey (PANYNJ) in August 2021. It was originally due to commence in 2020 but was hit with delays due to the pandemic.

However, PANYNJ and JMP signed a reworked deal for the new terminal development in August 2021 which was subsequently approved.

JPM will build a state-of-the-art new international terminal that will anchor the north side of JFK Airport. The development will also include a US Customs and Border Protection processing facility and significant airside and landside expansions.

The new structure will be developed on the former sites of Terminal 6 and the ageing Terminal 7 building, the latter of which will be knocked down once British Airways moves to Terminal 8. The new terminal – scheduled to be delivered in 2028 – will also connect to Terminal 5.

Vantage will manage the existing Terminal 7 until its demolition in 2025 as well as oversee the new international Terminal 6 from completion through 2060 via a long-term lease with the PANYNJ.

AECOM Hunt is providing design-build services for the project.

Advisers JMP:

  • Goldman Sachs – financial
  • Morgan Stanley – financial
  • O’Melveny – legal
  • Troutmann – construction documentation

Advisers to lenders:

  • White & Case – legal
  • BTY – technical

Additional advisers:

  • Simpson Thacher & Bartlett – legal to equity providers
  • McCarthy Tétrault – legal to equity providers
  • Latham & Watkins – legal to American Triple I

PANYNJ did not respond with a comment at the time of publishing.

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Snapshots

Asset Snapshot

JFK International Airport New Terminal 6


Value:
USD 4,865.00m
Full Details
Transaction Snapshot

JFK International Airport New Terminal 6 PPP


Financial Close:
18/11/2022
SPV:
JFK Millennium Partners
Value:
$4,865.00m USD
Equity:
$1,430.00m
Debt:
$3,435.00m
Debt/Equity Ratio:
71:29
PPP:
Yes
Full Details