Construction will soon get underway for the new Terminal One at New York's John F. Kennedy International Airport, to be completed in three phases by 2030.
The lead investor is Ferrovial, which in early June reached agreement to acquire 96% of the Carlyle Global Infrastructure Opportunities Fund's 51% stake in New Terminal One, the consortium that was selected to design, build and operate the US$9.5 billion terminal under a public-private partnership.
Construction debt financing was then signed with a bank consortium comprising MUFG Bank as administrative agent, along with Bank of America, Bank of China, Citibank, HSBC Bank USA, ING Capital, Intesa SanPaolo, KDB Asia Limited, KfW IPEX-Bank GmbH, Société Générale, Sumitomo Mitsui Banking Corporation, Bank of Nova Scotia, and Korea Development Bank. Milbank represented the lenders.
The funding consists of a term loan in two tranches, along with a liquidity facility, a working capital facility and a security deposit facility.
The construction of the first phase of New Terminal One is expected to be completed in 2026, with additional phases to follow.
The project involves the redevelopment and expansion of existing Terminals One and Two and the already demolished Terminal Three into the new Terminal One, a 2.4 million square foot, 23-gate, state-of-the-art terminal for international travel.
The project consortium is now 51% owned by Ferrovial and Carlyle (96% and 4% respectively) , 30% by JLC Infrastructure (Loop Capital and Magic Johnson Enterprises), and 19% by Ullico. They will operate the terminal until 2060.
JFK is the busiest international gateway airport into the United States. Under the plan, it will have four terminals, Terminal 8 (American Airlines), Terminal 6 (JetBlue Airways), Terminal 4 (Delta) and the new Terminal 1 replacing the old terminals 1,2 and 3.
Ferrovial has committed to US$1.14 billion of equity injections between 2022 and 2026. The intention is to eventually refinance the US$6.6 billion senior secured construction facility via the capital markets.