Chatham Financial acts as the sole financial risk management and hedging advisor for the New Terminal One at JFK Airport
June 17, 2022 (Kennett Square, PA) Chatham Financial, a global leader in financial risk management advisory and software solutions, acted as the sole financial risk management and hedging advisor for sponsors redeveloping terminals 1, 2, and 3 of New York’s JFK Airport. On June 10, New Terminal One (NTO) at JFK Airport, a consortium of labor, operating, and financial partners building this terminal, announced the financial close of the first phase of the project and will move forward with construction. The $9.5 billion project represents the largest private investment ever committed to a U.S. airport terminal, with the recent financial close including $6.63 billion in bank financing.
Chatham advised the consortium in all aspects relating to hedging and interest rate risk management over several years. In the process, Chatham helped navigate various strategic plan changes, most notably in response to COVID-19 and the impact it had on air travel.
“This project is extraordinary — in its own right — and even more so because of the headwinds it overcame, first with COVID-19-related disruptions to the travel industry and then more recently with turbulent capital markets,” said Jordan Helmberger, Managing Director in Chatham’s Private Equity and Infrastructure business. Treasury yields were up almost 2% since the start of the year, and the prospect for a continued rising interest rate environment lingered as the project neared financial close, according to Chatham. Helmberger continued, “In this type of project, interest rate risk management is central to the plan of finance, so adjusting for these disruptions to ensure rate shocks aren’t negatively impactful is paramount. Having this risk management strategy in place was critical to the $9.5 billion infrastructure investment, and we are pleased to see the development phase of this project close successfully." NTO will be a transformational project for JFK and the New York region, providing a new, 2.5 million square foot terminal building and creating 10,000 new jobs in the region.
About Chatham Financial
Chatham Financial is the largest independent financial risk management advisory and technology firm. A leader in debt and derivative solutions, Chatham provides clients with access to in-depth knowledge, innovative tools, and an incomparable team of over 700 employees to help mitigate risks associated with interest rate, foreign currency, and commodity exposures. Founded in 1991, Chatham serves more than 3,500 companies across a wide range of industries — handling over $1 trillion in transaction volume annually and helping businesses maximize their value in the capital markets, every day.
+1 617 391 0790
Our featured insights
Financing Priorities 2024: Capital Markets for Corporates, Private Equity, and Real Property Investors
Join us as we examine the latest priorities and trends for navigating real estate and corporate financing. Our expert panel will explore the dynamic capital markets landscape, revealing how it may impact priorities in 2024. Through an interactive Q&A format that encourages a variety of...
Expert Conversation with Matt Henry and Rob Kaplan
Matt Henry, Chatham's Managing Partner and CEO, and Rob Kaplan, former President and CEO of the Federal Reserve Bank of Dallas, discuss the economy, alternative capital sources, interest rates, and more.
BoE holds rates steady again while ECB pauses record run of hikes
The Bank of England (BoE) kept rates on hold at 5.25% for a second consecutive meeting today, as it attempts to balance a weakening economy with inflation that is still measuring three times its target. The Bank's updated forecasts show medium-term inflation slightly higher than in August's...
Fed holds rates steady while noting tighter financial conditions
On Wednesday, November 1, 2023, the Federal Open Market Committee (FOMC) voted unanimously to hold the fed funds rate at a target range of 5.25%–5.50%. Today's pause represents consecutive FOMC meetings with no rate change, having hiked in 11 out of the last 14 prior meetings. The most notable...
Capital Markets Sentiment Report
This report’s data comes from five poll questions answered during a live Chatham webinar held on September 21, 2023, hosted by Amol Dhargalkar and Jackie Bowie. We polled over 1,500 respondents spanning various industries, including commercial real estate, corporates, financial institutions, and...
Jackie Bowie and Amol Dhargalkar discuss the role of alternative capital sources in TMI treasurycast
TMI treasurycast sits down with Jackie Bowie and Amol Dhargalkar to discuss the role of alternative capital sources and the opportunities and challenges borrowers may face over traditional means. They outline how to determine if alternative funding sources are appropriate depending on the business.
Jackie Bowie and Amol Dhargalkar discuss higher-for-longer interest rates in the Real Estate Capital USA
Real Estate Capital USA covers Chatham's Semiannual Market and Economic Update webinar, hosted by Jackie Bowie and Amol Dhargalkar. They outline how higher-for-longer interest rates will impact the global economy across markets and sectors.
ECB hikes 25 bps while BoE keeps rates steady
The Bank of England (BoE) announced it would keep rates on hold at today's meeting, following 14 consecutive rate hikes that have taken borrowing costs to 5.25%, the highest level since 2007. A 25-basis-point rate hike was expected at the start of the week, but the release of August inflation...