The Bond Buyers 2016 Rising Stars share their stories on why they chose a career in municipal finance at our recent California Public Finance Conference.
VOICE OVER: As New York and its visitors have long known for years, the crowded inefficient main terminal at LaGuardia Airport has past its useful life. In June, New York Transportation Development Corporation as a conduit issue for the LaGuardia Gateway partners closed the public private partnership financing to help fund a $4 billion redevelopment of the terminal, including new satellite concourses with 35 gates, additional parking, a redesigned road system, and a unified architectural link to the newer terminals to the newer terminals to the east.
At $2.4 billion, it is the largest US P3 to date, the largest airport transaction in history, and the largest alternative minimum tax transaction ever brought to market. The financing consists of $2.3 billion of private activity, tax exempt bonds, and $150 million dollars of taxable bonds. The deal drew orders from 140 institutions including traditional Muni investors, as well as international funds and life insurance companies that don't benefit from the tax exemption. Repricing during the order period resulted in an all in TIC of 4.17%, shattering records for absolute yields and credit spreads for a BBB rated credit.