New York’s LaGuardia, Long in Tatters, Borrows Big for Facelift

  • Port Authority has businesses share risk of $4 billion project
  • Private consortium issues $2.4 billion of municipal bonds

NYC's LaGuardia redesign.

Source: New York State Press Office
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New York is about to find out whether it’s possible to build a 35-gate terminal at LaGuardia Airport around the existing one without disrupting operations or becoming plagued by cost overruns and delays.

To finance construction at the airport in Queens, a group created by Swedish construction company Skanska AB, Canadian airport operator Vantage Airport Group and France’s Meridiam sold $2.4 billion of debt Tuesday in the biggest offering of municipal bonds since March. The group, which has put up $200 million in equity for the $4 billion project, has guaranteed it will be finished on-budget in six years.