Assured Guaranty Insures $920 Million of Bonds as Part of $1.95 Billion JFK Airport Terminal 6 Redevelopment Project

Rhea-AI Summary

Assured Guaranty has insured $920 million of senior Special Facilities Revenue Bonds for the JFK Airport Terminal 6 Redevelopment Project. The bonds, issued on November 5, are part of a $1.95 billion offering, including $820 million of Series 2024A Green Bonds and $100 million of Series 2024B fixed rate convertible bonds, both maturing in 2054. The funds will refinance JFK Millennium Partners' existing bonds and bank loans for constructing a new 1.2 million square foot Terminal 6. The project consortium includes Vantage Group, American Triple I, RXR Realty and JetBlue Airways.

Positive

• Secured large-scale infrastructure project with $920 million bond insurance
• Participation in sustainable development through Green Bonds
• Strategic expansion in airport infrastructure financing
• Partnership with established consortium including JetBlue Airways

Negative

• None.

Insights

Financial Analyst

This $920 million bond insurance deal for JFK Terminal 6 represents a significant business win for Assured Guaranty. The transaction enhances AGO's infrastructure portfolio and demonstrates its strong market position in large-scale P3 (public-private partnership) projects. The deal's structure, combining green bonds and convertible capital appreciation bonds, shows sophisticated financial engineering that should generate stable, long-term revenue streams through 2054.

The refinancing nature of this transaction reduces short-term risks while securing long-term income. JetBlue Airways' involvement as a consortium member adds creditworthiness to the project. The green bond component aligns with ESG investing trends, potentially attracting a broader investor base. This deal reinforces AGO's leadership in infrastructure finance and should contribute positively to future earnings through premium income.

NEW YORK--(BUSINESS WIRE)-- Assured Guaranty (AG)* has insured $920 million of senior Special Facilities Revenue Bonds issued by the New York Transportation Development Corporation in connection with the JFK Airport Terminal 6 Redevelopment Project. The insured bonds were issued on November 5 as part of an upsized $1.95 billion offering and included $820 million of Series 2024A (Green Bonds) (AMT) fixed rate, current interest bonds with a maturity in 2054 and approximately $100 million of Series 2024B (AMT) fixed rate convertible capital appreciation bonds with a maturity in 2054.

The bonds were issued to refinance part of JFK Millennium Partners’ (JMP) short term 2022A bonds and bank loans that were used to finance its redevelopment project, which will replace former Terminal 6 and 7 with a new world-class, 1.2 million square foot Terminal 6 with sustainable and innovative technology. JMP is a consortium established by Vantage Group, American Triple I, RXR Realty and JetBlue Airways.

Lorne Potash, Managing Director, Infrastructure Finance, Americas commented, “We are thrilled to have played a part in the execution of this large bond issue that has refinanced a portion of JMP’s redevelopment project. As major infrastructure improvements continue to be undertaken nationally, AG continues to be a leader in helping provide cost-effective financing for very large, complicated public-private partnership projects for generational assets such as the JFK Terminal 6 Redevelopment Project.”

“We are pleased to work with JFK Millennium Partners and Goldman Sachs on this milestone refinancing for Terminal 6,” said Sam Nakhleh, Director, Infrastructure Finance, Americas. “This will be our second major project with Vantage Group, with whom we worked together successfully on the LaGuardia Airport’s Terminal B Replacement Project.”

Goldman Sachs & Co. LLC and Siebert Williams Shank & Co., LLC served as co-bookrunners and co-senior managers. Hogan Lovells acted as legal advisor to AG.

IMPORTANT NOTICE

All of the securities having been sold, this announcement is for information purposes only. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.

*AG is a subsidiary of Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty). Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. AGL is a publicly traded (NYSE: AGO) Bermuda-based holding company. More information on AGL and its subsidiaries can be found at AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, difficulties executing Assured Guaranty’s business strategy; the demand for Assured Guaranty’s financial guarantees; actions that the rating agencies may take with respect to Assured Guaranty’s financial strength ratings; adverse developments in Assured Guaranty’s guaranteed portfolio; other risks and uncertainties that have not been identified at this time; management’s response to these factors; and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of November 5, 2024. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241105617168/en/

Robert Tucker, 212-339-0861

Senior Managing Director, Investor Relations and Corporate Communications

rtucker@assuredguaranty.com

Media:

Ashweeta Durani, 212-408-6042

Director, Corporate Communications

adurani@assuredguaranty.com

Source: Assured Guaranty Ltd.

FAQ

What is the total value of bonds Assured Guaranty (AGO) insured for JFK Terminal 6?

Assured Guaranty insured $920 million of senior Special Facilities Revenue Bonds for the JFK Terminal 6 Redevelopment Project.

When will the JFK Terminal 6 bonds insured by Assured Guaranty (AGO) mature?

Both Series 2024A and Series 2024B bonds will mature in 2054.

What is the size of the new JFK Terminal 6 project backed by Assured Guaranty (AGO)?

The new Terminal 6 will be a 1.2 million square foot facility featuring sustainable and innovative technology.

How much of the Assured Guaranty (AGO) insured bonds are Green Bonds?

$820 million of the insured bonds are Series 2024A Green Bonds (AMT) fixed rate, current interest bonds.