Assured Guaranty Municipal insures $800m bonds for JFK New Terminal One project

Assured Guaranty Municipal Corp. (AGM), a subsidiary of Assured Guaranty Ltd., has once again played a pivotal role in financing one of the United States’ largest public-private transportation projects, JFK New Terminal One, by insuring $800 million in bonds.

The bond issuance, carried out on June 27, 2024, is part of a broader $2.55 billion Series 2024 fixed-rate bond issue. This marks the second time AGM has insured bonds for the JFK New Terminal One project, bringing its total insured bonds for the project to $1.6 billion out of the $4.55 billion issued to date. The bonds, issued by the New York Transportation Development Corporation on behalf of JFK New Terminal One—a consortium including major players like Ferrovial Airports, JLC Infrastructure, Ullico Infrastructure Fund, and Carlyle Group—demonstrate a strong continuation of investor confidence and financial backing for significant infrastructure developments.

Lorne Potash, Managing Director of Infrastructure Finance, Americas at AGM, highlighted the significance of the insurance support: “For the second time in less than seven months, Assured Guaranty’s bond insurance on $800 million of bonds once again helped the issuer achieve a highly successful execution. The 2023 and 2024 insured issues together represent the largest commitment Assured Guaranty has to a single public-private partnership credit. We are the only bond insurer with the experience, scale, and financial strength to provide meaningful cost savings for issues of this size and complexity.”

JFK New Terminal One is touted as the largest public-private partnership transportation project in the U.S., with the bonds set to fully amortize after an initial interest-only period, having a final maturity in 2060. The insured series includes various serial and term bonds, structured to accommodate long-term financing needs of the project, ensuring a stable financial base for its completion and operation.

The transaction was supported by BofA Securities and Loop Capital Markets as co-bookrunners, with Barclays serving as co-senior manager. Hogan Lovells provided legal advisory services to AGM, ensuring compliance and strategic legal positioning throughout the transaction process.

The successful bond issuance for JFK New Terminal One not only reflects the robustness of the public-private partnership model in tackling major infrastructure projects but also underscores the crucial role of financial instruments such as bond insurance in managing and mitigating risks associated with large-scale investments. Assured Guaranty’s repeated involvement and substantial financial backing highlight its leadership in the market and its capacity to support significant urban development initiatives.