City completes $27.8 million special obligation bond issuance
FOR IMMEDIATE RELEASE: April 9, 2020
The City of Kansas City, Missouri, has issued $27.785 million in special obligation improvement bonds to fund various capital improvement projects.
The Series 2020 bonds were issued on April 8 in three series. The Series 2020A taxable bonds and Series 2020B tax-exempt bonds were issued to fund $11.38 million and $7.305 million, respectively, in various infrastructure improvements, including repairs to City Hall, the Liberty Memorial, parking garages and for street reconstruction in the City Market area. The short-term Series 2020C tax-exempt bonds were issued to fund approximately $9.1 million in start-up costs associated with the extension of the Downtown Streetcar line.
The overall effective interest rates for the Series 2020A taxable, the Series 2020B tax-exempt, and Series 2020C tax-exempt bonds are 3.56, 2.67 and 2.35 percent, respectively. The underlying credit ratings on the transaction were AA- and A1 by Standard & Poor's and Moody's Investors Service, respectively.
“I am very pleased with the results,” said Mayor Quinton Lucas. “Our staff and the finance professionals who assist them have worked diligently during these turbulent times to ensure that the needs of our residents are served and protected. This sale allows the City to continue doing the public’s business in the wake of the current pandemic, protecting the financial interests of all of the City’s residents now and in the future.”
The City used the negotiated method of sale for the Series A and B bonds, with UMB Bank serving as senior manager, along with Valdes and Moreno as co-manager. The City used the private placement method of sale for the Series C bonds. Hilltop Securities and Moody Reid Financial Advisors served the City on the transaction as co-financial advisers. Kutak Rock and The Hardwick Law Firm served as co-bond counsel and co-disclosure counsel. Gilmore & Bell served as counsel to the underwriters.
Media inquiries and other requests for more information about this issue should be directed to City Treasurer Doug Buehler at 816-513-1024.