KANSAS CITY, MO, Feb. 27, 2009 -- The City of Kansas City, Mo., successfully issued $198,915,000 in Water Refunding and Improvement Revenue Bonds, Series 2009A, from Feb. 25-26. The bonds were issued through a negotiated sale process to refund approximately $133 million of outstanding debt and to provide approximately $69 million to fund capital improvements to the City's water treatment and distribution system. The projects are expected to be completed in the 2009 and 2010 construction seasons.
"I am pleased with the overall results of the bond sale and, given these challenging economic times, am excited to see the funds put to work improving the City's water system, as approved by City residents in 2005," City Manager Wayne A. Cauthen said.
The City received more than $238 million in orders for the bonds, including strong participation from Missouri retail bond investors. Bond yields ranged from 0.94 percent for bonds maturing Dec. 1, 2009 to 5.24 percent for bonds maturing Dec. 1, 2032. The bond transaction provides approximately $2.3 million in present value net debt service savings over the remaining life of the refunded bonds.
"The improved credit position of the Water Enterprise Fund translated into the aggressive pricing realized for this City bond issue and strong support shown by Missouri municipal bond investors," Director of Finance Jeffrey Yates said.
Standard and Poor's upgraded its credit rating on the City's Water Revenue Bonds to AA+ from AA and Moody's confirmed its outstanding A1 rating.
The underwriting syndicate was led by Merrill Lynch & Co., and included Siebert Brandford Shank & Co., George K. Baum, Rice Financial Products Company and Valdés & Moreno Inc. Co-financial advisors were Public Financial Management Inc. and TKG & Associates. Co-bond counsel was Gilmore & Bell, P.C. and The Martinez Law Firm LLC and Bryan Cave LLP and the Hardwick Law Firm acted as counsel to the underwriters.
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