City completes $72.8 million Water Revenue Refunding Bond Issuance
Refinancing Water Revenue Series 2009A saves millions in interest
FOR IMMEDIATE RELEASE: July 24, 2019
The City of Kansas City, Missouri, on Wednesday issued $72.865 million in water refunding revenue bonds, saving more than $11.9 million in interest by taking advantage of current rates.
The Series 2019A bond proceeds and $11.39 million in net premium received from the bond purchasers provide $88.39 million to refund the Water Refunding Revenue Series 2009A bonds. The refunding bonds, with an interest cost of 1.72 percent, replaced bonds that had interest rates averaging over 4.95 percent.
“This refunding reduces interest costs going forward, allowing KC Water to use those savings for much needed water improvement projects, which will serve Kansas Citians for generations to come,” said Terry Leeds, KCMO Director of Water Services.
Under state law, the City does not need voter approval to issue water revenue bonds that will be used to refund outstanding water revenue bonds. As a result, the issuance of the 2019A refunding bonds will not count against the City’s prior water revenue bond voted authorization obtained at the 2014 election.
The City used the negotiated method of sale with RBC Capital Markets, LLC serving as senior manager of the underwriting team along with Ramirez & Co., Inc.; Raymond James; and Valdes & Moreno, Inc. The bonds are rated AA+/Aa2 by S&P Global Ratings and Moody’s Investors Service, respectively. The offering targeted both retail and institutional investors.
Hilltop Securities, Inc. and Independent Public Advisors, LLC served the City on the transaction as co-financial advisors. Gilmore & Bell, P.C. and Clayborn & Associates, LLC served as both co-bond counsel and co-disclosure counsel.
Media inquiries and requests for information can be addressed to Doug Buehler, City Treasurer, Finance Department at 816-513-1024.