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Kansas City Completes $79.53M Water Revenue Improvement Bond Issuance
KANSAS CITY, MO — The City of Kansas City, Missouri, recently issued a total of $79.53 million principal amount of water revenue improvement bonds.
The proceeds will be used to fund $36.7 million in water main replacements, $20 million to upgrade and modernize the water treatment plant, $12 million to replace switchgear at the secondary pump station, $7.7 million for improvements to the Water Department's chemical building, and $3.1 million for other capital improvements. The issuance is pursuant to the 2014 authorization where voters approved $500 million in total authority for future capital projects for the city's water treatment and distribution system.
The overall effective interest rate for the Series A bonds is 2.33 percent. The bonds are rated AA+ and Aa2 by Standard & Poor's and Moody's Investors Service, respectively.
“Wednesday's sale allows the city to continue moving forward with the water treatment and distribution system projects authorized by voters in 2014 and, importantly, allows the city to help protect the health interests of all Kansas City residents — now and into the future,” Mayor Quinton Lucas said.
The city used the negotiated method of sale for the Series A bonds, with J.P. Morgan serving as the senior manager, along with Piper Sandler & Co., Ramirez & Co. Inc. and Valdes & Moreno Inc. as co-managers. 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 on the transaction. Bryan Cave Leighton Paisner LLP served as counsel to the underwriters.
Midwest Contractor ProjectsThe proceeds will be used to fund $36.7 million in water main replacements, $20 million to upgrade and modernize the water treatment plant, $12 million to replace switchgear at the secondary pump station, $7.7 million for improvements to the Water Department's chemical building, and $3.1 million for other capital improvements. The issuance is pursuant to the 2014 authorization where voters approved $500 million in total authority for future capital projects for the city's water treatment and distribution system.
The overall effective interest rate for the Series A bonds is 2.33 percent. The bonds are rated AA+ and Aa2 by Standard & Poor's and Moody's Investors Service, respectively.
“Wednesday's sale allows the city to continue moving forward with the water treatment and distribution system projects authorized by voters in 2014 and, importantly, allows the city to help protect the health interests of all Kansas City residents — now and into the future,” Mayor Quinton Lucas said.
The city used the negotiated method of sale for the Series A bonds, with J.P. Morgan serving as the senior manager, along with Piper Sandler & Co., Ramirez & Co. Inc. and Valdes & Moreno Inc. as co-managers. 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 on the transaction. Bryan Cave Leighton Paisner LLP served as counsel to the underwriters.
