City of Kansas City
Home Services Residents Business Visitors CityOfficials
I Want To...
City Departments

News from City Hall
City Communications Office
City of Kansas City, Mo.


City completes $216.895 million general obligation bond issuance

On the morning of March 8, 2012, the City of Kansas City, Mo., successfully issued a total of $216.895 million in general obligation improvement and refunding bonds. The bond proceeds plus $19.7 million in net premium provided $130.5 million for basic infrastructure projects; zoo exhibit renovation; expansion and construction of a new East Patrol police station and crime lab; construction of a new North Patrol police station; and the purchase of police helicopters. The effective interest rate for the new money portion is 2.77 percent.

Simultaneously, the City refinanced a total of $93.52 million of outstanding general obligation debt, taking advantage of the continued low interest rate environment. The refunding portion of the bond sale will help the City achieve debt service savings, on a present value basis, totaling more than $9 million and 9.72 percent of refunded principal. The refunding bonds, with an interest cost of 2.29 percent, replaced bonds that had interest rates averaging near 5.00 percent. The underlying credit ratings on the transaction were AA/Aa2/AA by Standard & Poor's, Moody's Investors Service, and Fitch Ratings, respectively.

"These bonds are sold at excellent rates and will finance construction and renovation projects that will put Kansas Citians back to work. These investments were approved by the voters, and we are taking advantage of low interest rates to make good on our promises," said Mayor Sly James.

The City used the negotiated method of sale with Citigroup serving as senior manager of the underwriting team along with Loop Capital Markets; M.R. Beal & Company; Oppenheimer & Co., Inc.; Siebert Brandford Shank & Co., LLC; and Valdes and Moreno. The underwriting syndicate solicited orders more than two days 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.

"I am very pleased by the outcome of this bond sale considering the excess of supply in the municipal bond market, premium constraints and savings goals of the City,” said Director of Finance Randall Landes.

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. Bryan Cave 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.


News Archives

Contact Us |  Sitemap  | Legal Notice  | Privacy ©2013 City of Kansas City, Missouri. All Rights Reserved
  French  German  Italian  Portuguese  Spanish  Russian  Dutch  Greek  Japanese  Korean  Chinese  Taiwanese  Swahili