NY’s JFK Airport taps munis for $1.5b to revamp terminal

John F. Kennedy International Airport is seeking funds to help it build its New Terminal One, making it the latest facility to tap investors amid an airport bond boom. Next week, the group behind the public-private partnership running the project will offer debt to refinance part of the $6.6b bank loan taken out in 2022 for the development. In November, $1.5b in bonds were offered to start taking down the facility, and upsized the deal to $2 billion to meet demand. When that debt trades, which isn’t often, it does so at premium prices. The New York hub joins facilities from coast to coast that are raising money to pay for much-needed repairs. US airports need $151b in infrastructure upgrades through 2027, according to Airports Council International-North America. The deal adds to a muni supply wave that’s jumped by more than a third over last year’s pace to $205b. Moody’s Ratings and Fitch Ratings have assigned the deal a grade just one level above junk status, though the demand prospects for air travel mitigate some concerns about costs and complexity. “With barely an investment grade rating at BBB- this shows the upfront risk and debt involved in these massive terminal projects,” said Byron Anderson, head of fixed income at Laffer Tengler Investments, in an email. “The good news is that JFK is one of the busiest airports in the US and demand should stay high.” <br/>