The New York Transportation Development Corporation will issue US$2.5 billion of special bond facilities on behalf of LaGuardia Gateway Partners LLC (LGP) in order to help financing LaGuardia Airport's US$4 billion renovation project.
LaGuardia Gateway Partners (LPG) is the consortium in charge of the design, operation, financing and maintenance of the project under a P3 contract with the Port Authority of New York and New Jersey.
LPG will use its operating revenues from the Terminal B of the airport in order to repay the bonds.
Contract price for the P3 scope of the project is $2.8 billion, with an additional $1.2 billion for the New Improvements and Central Hall elements, being funded by the Port Authority. The equity contribution to the project is $200 million, to be committed by Vantage Airport Group (New York) Ltd. (33.33%), Skanska Infrastructure Development (33.33%), and Meridiam Infrastructure North America (33.33%) The P3 scope of the project also benefits from $1 billion in phased Port Authority funding expected to be funded with PFCs or other funding.
The debt component is comprised of up to approximately $2.35 billion in tax exempt AMT bonds; up to approximately $150 million in taxable bonds; and up to $500 million in taxable delayed draw private placement bonds.
Fitch Ratings expects to assign a BBB rating to the bonds. New York Transportation Development Corporation expects to issue US$2.5 billion in special facilities bonds, series 2016A, 2016B, and 2016C, on behalf of LaGuardia Gateway Partners.
The Port Authority and LGP expect to reach financial close and operational handover on June 1st.
In March we informed that the LaGuardia P3 project had been given green light.
In January the Port Authority of New York and New Jersey’s Board of Commissioners voted unanimously to begin the first phase of the overall redevelopment of LaGuardia Airport by selecting LaGuardia Gateway Partners to develop the world-class facility.
The wining team is comprised of Vantage Airport Group, Skanska and Meridiam for development and equity investment; Skanska and Walsh Construction as the construction joint venture; HOK and Parsons Brinckerhoff as the design joint venture; and Vantage Airport Group for management of the operations.
The project involves: