News from City Hall
City Communications Office
City of Kansas City, Mo.
FOR IMMEDIATE RELEASE: Feb. 8, 2012
City completes $47.725 million water revenue bond issuance
The City of Kansas City, Mo., successfully issued $47.725 million in water revenue bonds on Tuesday, Feb. 7. The bond proceeds plus $4.7 million in net premium provided $52 million in funding of water facility improvements, water main improvements and the conclusion of the small main replacement program. The effective interest rate on the bonds is 3.27 percent. The underlying credit ratings on the transaction were AA+/Aa2 by Standard & Poor's and Moody's Investors Service, respectively.
"I am pleased that the Water Services Department was able to take advantage of historically low interest rates for the purposes of financing these necessary improvements to the water system," said Mayor Sly James.
The City used the negotiated method of sale with Jefferies & Company, Inc. serving as senior manager of the underwriting team along with George K. Baum & Company; UMB Bank, N.A.; and Valdes and Moreno. The underwriting syndicate solicited orders targeting both retail and institutional investors and coordinated closely with City staff and the City’s financial advisers to achieve the needed structure of the bond issue.
“The premium generated from the sale of the bonds will allow the City to fund necessary projects while preserving voted bond authority. This will enable the City to fund additional projects under the existing voted authorization,” said Water Services Director Terry Leeds.
FirstSouthwest and Moody Reid Financial Advisors served the City on the transaction as co-financial advisers. Gilmore & Bell, P.C. and Martinez Madrigal & Machicao, LLC served as co-bond counsel. Disclosure counsel was handled by King Hershey, PC, Clayborn & Associates, LLC and Jane Hart Law Offices, LLC. Kutak Rock LLP served as counsel to the underwriters.
Media inquiries and other requests for more information about this issue should be directed to Tammy Queen, city treasurer in the Finance Department, at 816-513-1019.