NEW YORK - Assured Guaranty (NYSE:AGO), a financial guaranty insurance company, has insured $920 million in bonds for the redevelopment of Terminal 6 at John F. Kennedy International Airport. The bonds, part of a larger $1.95 billion offering, were issued on November 5 to refinance existing short-term bonds and bank loans.
The insured issuance comprises $820 million of Series 2024A (Green Bonds) with a fixed rate and a 2054 maturity, and approximately $100 million of Series 2024B, also with a fixed rate and 2054 maturity. These bonds are aimed at supporting the JFK Airport Terminal 6 Redevelopment Project, a venture replacing the former Terminals 6 and 7 with a new 1.2 million square foot facility, incorporating sustainable and innovative technologies.
JFK Millennium Partners (JMP), a consortium comprising Vantage Group, American Triple I, RXR Realty, and JetBlue Airways (NASDAQ:JBLU), is spearheading the project. Lorne Potash, Managing Director, Infrastructure Finance, Americas at Assured Guaranty, expressed enthusiasm for the company's role in this significant refinancing effort.
Sam Nakhleh, Director, Infrastructure Finance, Americas at Assured Guaranty, also noted the company's satisfaction in collaborating with JMP and Goldman Sachs (NYSE:GS) on this refinancing, which marks the second major project with Vantage Group following the LaGuardia Airport’s Terminal B Replacement Project.
Goldman Sachs & Co. LLC and Siebert Williams Shank & Co., LLC served as co-bookrunners and co-senior managers for the bond issue, while Hogan Lovells provided legal advice to Assured Guaranty.
Assured Guaranty Ltd. (NYSE: AGO), the parent company of Assured Guaranty and a Bermuda-based holding company, offers credit enhancement products across various markets and has a presence in the asset management industry through its ownership interest in Sound Point Capital Management, LP.
The announcement emphasizes that all securities have been sold and that the information is intended solely for informational purposes. It also notes that the securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States without registration or exemption. This article is based on a press release statement.
In other recent news, Assured Guaranty has reported strong financial results for Q2 2024, showcasing a significant increase in adjusted operating income per share, which rose to $1.44 from $0.60 in the same period last year. The company also highlighted robust new business production and the completion of a strategic merger that has improved operational efficiency and resources. Despite facing challenges in the healthcare sector, Assured Guaranty maintains a positive outlook on its protections and future growth, particularly in the structured finance and international infrastructure markets.
In addition, Assured Guaranty insured $2.5 billion of par across 54 deals in the first half of 2024, and continued its share repurchase program, buying back 1.9 million shares for $152 million in Q2 2024. The merger between Assured Guaranty Municipal and Assured Guaranty Inc. has resulted in increased operational efficiencies, and the company's financial strength ratings remain unchanged post-merger.
Assured Guaranty also received a favorable ruling in Puerto Rico's Electric Power Authority restructuring case, and aims for a double-digit return on equity in each business segment while planning to reduce excess capital in the near term. The company is well-positioned for future growth, focusing on structured finance and international infrastructure markets, and plans to maintain its share repurchase pace while being open to potential acquisitions or business opportunities. Despite pressures in the healthcare sector due to COVID-19 and inflation, the company has closed several transactions in promising sectors and sees potential for higher returns on equity in its international business.
InvestingPro Insights
Assured Guaranty's involvement in the $920 million bond insurance for JFK Airport's Terminal 6 redevelopment aligns with the company's strong financial position and commitment to shareholder value. According to InvestingPro data, Assured Guaranty boasts a market capitalization of $4.34 billion and an attractive P/E ratio of 6.47, suggesting the stock may be undervalued relative to its earnings.
InvestingPro Tips reveal that Assured Guaranty has maintained dividend payments for 21 consecutive years and has raised its dividend for 12 consecutive years. This consistent dividend history, coupled with a current dividend yield of 1.52%, underscores the company's financial stability and commitment to returning value to shareholders. The company's ability to sustain and grow its dividend while engaging in significant infrastructure projects like the JFK Terminal 6 refinancing demonstrates its robust business model.
Moreover, Assured Guaranty's involvement in large-scale infrastructure projects is reflected in its solid financials. The company reported a gross profit margin of 86.09% for the last twelve months as of Q2 2024, indicating efficient operations and strong pricing power in its insurance offerings.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and analysis on Assured Guaranty. There are 10 more InvestingPro Tips available, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.