Transactions & Cases Detail
LaGuardia Gateway Partners Closes on US$4 Billion Project to Redevelop and Operate New York’s LaGuardia Airport
June 1, 2016
4 Billion USD
On June 1, 2016, Vantage Airport Group, a worldwide airport operator and developer, commenced overseeing the US$4 billion redevelopment of LaGuardia Airport’s Central Terminal (Terminal B). The project will completely rebuild the terminal and construct a central hall that will create a single, unified LaGuardia Airport. In May 2015, the Port Authority of New York and New Jersey selected LaGuardia Gateway Partners (or LGP), a consortium comprised of Vantage Airport Group, Skanska AB and Meridiam Infrastructure, as the preferred proposer to undertake redevelopment and operations of the Terminal. The financial closing and lease commencement for the project occurred on June 1, 2016.
A key element in New York Governor Cuomo’s master plan to revitalize New York’s transportation infrastructure, the project includes a new 35-gate Terminal B, Central Hall, West Garage, related roadways and supporting infrastructure. The US$4 billion project is the largest public-private partnership in the United States. It will be financed through revenues, equity and debt, including approximately $2.4 billion aggregate principal amount of bonds that were issued in an underwritten offering. The bonds (which consisted of both tax-exempt and taxable tranches) were issued by New York Transportation Development Corp., a conduit issuer on behalf of LGP.
Vantage Airport Group is a leading developer, investor, manager and operator of airports around the globe. It develops, implements and hones best practices at airports around the world, which results in financially stronger, more sustainable, better connected airports for the communities and businesses they serve. Vantage’s current network is made up of nine airports around the globe.
McCarthy Tétrault advised Vantage Airport Group on all legal aspects of its involvement in the project from the commencement of the bid phase to financial closing, in its capacities as project bid leader, equity and consortium member and long-term service provider. The McCarthy Tétrault team was led by Jody Aldcorn and consisted of Pavan Jawanda, Maureen Gillis and Jerry Nguyen.