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 600 employees to help mitigate risks associated with interest rate, foreign currency, and commodity exposures. Founded in 1991, Chatham serves more than 3,000 companies across a wide range of industries — handling over $750 billion in transaction volume annually and helping businesses maximize their value in the capital markets, every day. To learn more, visit chathamfinancial.com.
+1 617 391 0790
Our featured insights
Answers to five key questions as you prepare for LIBOR cessation and the fall back to SOFR
With 2023 and the cessation of LIBOR officially upon us, some companies are opting to let their debt and interest rate hedges “fall back” through the adoption of standard language. While it might appear that this is the most straightforward way to manage the transition, there are five main...
Chatham's Q4 2022 outlook: Inflation, market volatility, and LIBOR transition
Watch Chatham's Managing Partner and Chair, Amol Dhargalkar, discuss key trends for the upcoming quarter like inflation, market volatility, and LIBOR transition.
Chatham Financial announces CEO transition effective January 2022
Matt Henry named the next Chatham CEO
Clark Maxwell and Laura Grant: 30 years of bringing knowledge, data, and tools to the capital markets
Clark Maxwell and Laura Grant talk about how Chatham continues to bring a combination of knowledge, data, and tools to the capital markets. Chatham Financial is celebrating 30 years of serving our clients.
Interest rate swap for an LBO financing: Three benefits of hiring an advisor
The key benefits of engaging an advisor for an interest rate swap in an LBO financing.
FX deal-contingent hedging for a large private equity fund
A recent example of deal-contingent hedging for a large European private equity fund.
Hedging a EUR refinancing
A recent example of an optimal hedging strategy for a large European private equity fund looking to refinance one of its assets.