In the latest installment of Muni Minute The Bond Buyer's 60-second video series that examines a top municipal market story that will impact the coming week we take a look at a massive financing for a planned overhaul of New York City's LaGuardia Airport that leads a robust slate of issuance in the primary market.
VOICE OVER: A $2.5 billion deal taking flight this week is aimed at providing New York City's LaGuardia airport with a major facelift. Conduit issuer New York Transportation Development Corp is selling the bonds on behalf of Laguardia Gateway partners. The developer was picked by the port authority of New York and New Jersey to undertake a public private partnership for the more than $4 billion overhaul in a lease running through 2050.
The makeover is expected to be built in phases over a 74 month period with plans for a new state of the art terminal, central hall and connecting con course. City group is underwriter for the sale which features $2.35 billion in tax exempt bonds, and $150 million in taxable securities. The bonds are backed by revenue from airlines and commercial concessions. Moody's rates the bonds B883 with Fitch rating the deal BBB. Both rating agencies have sited construction risks due to the project's complexity. I'm Andrew Coen. This has been your Muni Minute.