Chicago Advances $1.5B O’Hare deal as ORDNext expansion accelerates

(CHICAGO) Chicago is set to sell about $1.5 billion of airport revenue bonds to help pay for O’Hare International Airport’s next wave of terminal and airfield upgrades, moving a marquee modernization forward while locking in airline backing and investor confidence. The senior lien general airport revenue bonds, or GARBs, carry an ‘A+’ rating from Fitch Ratings as of November 5, 2025, and will channel new money into O’Hare’s $13.4 billion capital improvement program, including the $11.9 billion ORDNext terminal area program and an additional $1.5 billion in projects.

City officials say the proceeds will restore borrowing capacity on a line of credit that has fronted cash for ongoing work, a common step to keep large infrastructure programs moving. The financing underscores the scale and pace of O’Hare’s plan, which the city expects to support with a total of $9.1 billion in additional new-money borrowing through 2031. On a pro-forma basis, overall airport debt is projected to peak at $19.8 billion by 2031 as the program reaches full stride.

The bonds are secured by net revenues from O’Hare operations — a pledge that includes airline payments governed by a long-term agreement with the city. Both United Airlines and American Airlines have preapproved the capital plan and will contribute through rates and charges that help underpin the credit. In a sign of airline alignment with the city’s revised construction schedule, United said in a statement:

“We are pleased that Mayor Johnson and his aviation department have put forth a phasing plan that will ensure that TAP funds are first spent on the mission-critical portions of the program — the O’Hare Global Terminal and Satellite 1. The Global Terminal has always been the centrepiece of this programme and the crucial piece needed to ensure Chicago maintains its status as a global hub. Under this new phasing plan, we can deliver the most impactful elements of the modernisation project the quickest.”
American Airlines said it would be “vigilantly monitoring cost to preserve O’Hare’s status as an important connecting hub in our global network.”

The current sale is part of a cadence of offerings the city expects to bring as construction ramps up. A $375 million follow-on deal is anticipated soon, with more financings to come as contracts progress under ORDNext and associated workstreams. Ratings agencies have signaled comfort with that approach. Fitch and KBRA both rate the new bonds ‘A+’ with a stable outlook, citing O’Hare’s strategic importance and the city’s track record of delivering large projects on budget. For buyers seeking exposure to essential infrastructure with airline support and a broad carrier mix, O’Hare’s airport revenue bonds offer the familiar security of a net revenue pledge tied to one of the country’s busiest hubs.

Behind the numbers, the ORDNext plan reshapes how O’Hare moves people and planes, expanding gates and modernizing space built for a different era of aviation. After negotiations with its largest carriers, the city adjusted sequencing to prioritize the O’Hare Global Terminal and the first new satellite concourse while pushing back work on a second satellite to keep costs in check. The Global Terminal, pegged at $2.2 billion, replaces aging facilities at the heart of O’Hare and is designed to improve connections, add wide-body capacity, and rework passenger flows. The airline-backed phasing aims to deliver the most capacity-boosting elements sooner, a key consideration as domestic and international traffic continue to test existing space during peak periods.

Lawmakers in Illinois have also pressed for a clean path to the finish line after fits and starts in earlier years.

“With both parties now in agreement, we can begin to take a major step forward on the project with a shared vision – one that allows O’Hare to not only maintain its world-class status but to also modernise its terminals while leaving room to expand to meet the demands of travellers well into the future,” said Senator Tammy Duckworth, a Democrat from Illinois who has long advocated for the project.
The political support has dovetailed with airline concessions on timing and scope, helping the city keep the program on budget at each stage while managing debt and cash funding.

Construction activity is already visible along the airfield and in support zones. As of late 2025, site preparation is underway for Satellite Concourse 1, with full construction slated to begin in 2026. The city notes that phasing will minimize disruptions to current operations while unlocking new gate capacity as pieces come online. Over the next decade, O’Hare’s total gate count is expected to rise by about 25%, a lift that feeds directly into carrier growth plans and wider regional economic gains.

Chicago’s Department of Aviation forecasts that O’Hare 21, the broader modernization umbrella that includes ORDNext, could increase state tax revenues by $461 million and local tax revenues by $346 million across ten years as construction spending and passenger volumes rise. Those figures reflect not only the building trades working on new concourses and the Global Terminal but a ripple effect through concessions, maintenance, and airport-area logistics. For a region where O’Hare supports tens of thousands of direct and indirect jobs, the construction timeline is as much an economic planning document as it is a blueprint for travelers.

The financing structure is designed to match that timeline. Senior lien GARBs allow the city to borrow at investment-grade levels against airport net revenues, with coverage supported by airline rates that adjust under the use-and-lease framework. Because major carriers have preapproved the capital program, their payments reflect the agreed cost-sharing for projects like the Global Terminal and Satellite 1. That alignment matters to bondholders and to the airlines themselves, who at O’Hare balance hub operations with competition for gates, schedules, and premium international slots.

Chicago officials emphasize that the $1.5 billion in proceeds will replenish the line of credit that has been advancing funds for design, site work, and early-stage construction, keeping near-term cash flowing while larger contracts are bid and awarded. The sequence of sales — including the forthcoming $375 million tranche — mirrors the city’s move to phase projects with clearer milestones for completion. That approach helps manage interest costs and reduces the risk of borrowing too far ahead of construction, a point that ratings analysts have flagged in past reviews of large airport programs nationwide.

For passengers, the Global Terminal will be the most visible change. The city and its airline partners describe it as the centrepiece of O’Hare’s transformation, with expanded customs and security, wider concourses, and amenities built for today’s long-haul fleets. It is also central to maintaining Chicago’s status as a global connecting point, a role that United and American have cultivated with expansive domestic networks feeding international services. The carriers’ public statements — including United’s emphasis on “mission-critical” sequencing and American’s pledge to watch costs closely — reflect a shared interest: delivering capacity and quality without pushing O’Hare’s cost per enplaned passenger beyond competitive thresholds.

Investors will parse how far that alignment can stretch as more debt comes to market. The city’s plan to issue $9.1 billion in new money through 2031 will push total airport debt to a projected $19.8 billion, a sizable stack even for a large hub. But O’Hare’s position as a key node in national and international air travel, along with its history of managing major construction programs, underpins the ‘A+’ ratings and the stable outlooks. KBRA’s and Fitch’s views hinge on the airport’s scale, demand profile, and the affirmation that major airlines have signed off on the plan under a long-term agreement.

The broader O’Hare 21 framework also includes improvements outside of the terminal core, such as airfield reconfiguration and support facilities that help reduce taxi times and improve on-time performance. Those gains, although less visible than a new terminal hall, contribute to the airport’s ability to handle more flights reliably — a critical point as carriers schedule banks of arrivals and departures that depend on tight turnarounds. By pairing those operational upgrades with the ORDNext terminal expansions, the city argues it can boost efficiency and customer experience together, rather than chasing one at the expense of the other.

As the city moves into the next phase, officials point to the deliberate reshaping of the construction plan after extended negotiations with airlines. Work on two planned satellite concourses was reordered to prioritize the Global Terminal and Satellite 1, with the second satellite delayed to control costs. That choice, reflected in United’s statement, centers near-term dollars where they are expected to have the greatest impact on passenger throughput and airline operations. It also helps flatten the peak of expenditures, a benefit for both the rate base that airlines pay and the airport revenue bonds that investors are asked to buy.

O’Hare’s financial story has always been intertwined with its role in the region’s economy. The forecasted $461 million boost to state tax receipts and $346 million to local coffers over ten years is premised on more travelers moving through an expanded gate network and more construction activity in the short term. Chicago’s leaders — including Mayor Brandon Johnson, who has backed the reprioritized schedule — have framed the modernization as a generational investment to keep Chicago in the top tier of global cities for air travel. For a public works program that will run well into the next decade, maintaining bipartisan support and airline partnership is critical to avoiding delays that add cost.

Investors considering the $1.5 billion sale will see a credit anchored not just by carrier agreements and a net revenue pledge, but by the airport’s core attraction as a hub that neither United nor American can easily replicate elsewhere. That dynamic, along with diversified domestic and international demand, supports stable cash flows that can service growing debt. The city’s track record of delivering large projects on budget — a point ratings analysts have cited — is another piece of the case Chicago is making on the roadshow.

From the traveler’s point of view, the path to tangible benefits begins with early works like the site preparation now underway for Satellite Concourse 1 and accelerates as construction starts in 2026. As pieces open, O’Hare will add gates that reduce pressure on tight banks and enable smoother connections, particularly for international flights routed through the future Global Terminal. Airlines will time schedules to make the most of those gains, while airport managers juggle construction windows with peak travel seasons.

The city’s public documents lay out the program’s components and sequencing under the O’Hare 21 umbrella, including the terminal expansions branded as ORDNext. For readers seeking the city’s official overview and updates, the Chicago Department of Aviation provides details on project scope, phasing, and community benefits on the Chicago Department of Aviation’s O’Hare 21 page. As the bond market digests this latest sale and looks ahead to the $375 million deal to follow, the program’s success will hinge on maintaining the balance evident in the current plan: airline-backed phasing, disciplined borrowing, and on-the-ground progress that passengers and crews can feel.

For now, Chicago’s move to market is a reminder that one of the nation’s most important hubs is in the thick of a high-stakes rebuild. The decision to lead with the Global Terminal and Satellite 1, and to meter the rest of the work to control costs, reflects lessons learned from past megaprojects. With ratings firmed at ‘A+’, airline commitments in place, and a construction calendar that ties borrowing to shovel-ready work, O’Hare’s modernization enters its next stage with a clear financial runway. The test will be execution — hitting milestones, keeping spending aligned with the plan, and delivering the promised 25% increase in gate capacity on a schedule that keeps Chicago competitive for the next generation of flyers.