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Tuesday, August 19, 2008 |
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Contact: |
Joe McBride
816-243-3160
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$28.6 Million in General Airport Refunding Bonds Sold for Kansas City International Airport |
KANSAS CITY, Mo., August 19, 2008 – The City of Kansas City, Missouri, Aviation Department on August 13th successfully issued $28.6 million in General Improvement Airport Refunding Revenue Bonds to refund Kansas City International Airport’s outstanding Series 1997A Bonds.
The refunding transaction generated a net present value savings of approximately $1.9 million or 6.5 percent of the refunded bonds for the airport. Although the municipal markets have been volatile, the City was able to achieve a true interest cost of approximately 3.7 percent on the bonds.
The City utilized a negotiated method of sale to issue the bonds led by Senior Managing underwriter Piper Jaffray along with co-managing underwriters Edward Jones, Loop Capital, LLC, Backstrom, McCarley, Berry & Co, LLC and Valdés & Moreno, Inc.
In preparation of the refunding transaction, the rating agencies visited the airport and took a tour of the facilities. This visit helped the rating agencies understand the diversity of the airport revenues and its long-range capital improvement plan. The airport was able to maintain its underlying ratings of A1/A+/A+ by Moody’s Investor’s Service, Inc., Standard & Poor’s Ratings Service and Fitch Ratings. The ratings reflect KCI’s competitive airline costs, conservative capital improvement plan, lack of additional debt expected and the rating agencies’ faith in airport management.
“The financing team did a fantastic job selling our bonds considering the volatility of the market,” said Director of Aviation Mark VanLoh. “Plus, the strong underlying ratings helped tremendously with attracting buyers for our bonds and lowering our borrowing costs.”
First Southwest Company (Dallas, Texas) and Moody Reid (Kansas City, MO) served the City on this transaction as co-financials advisors. Bryan Cave LLP (Kansas City, MO) served as bond counsel, and Gilmore & Bell, P.C. (Kansas City, MO) and The Martinez Law Firm, LLC (Kansas City, MO) served as co-disclosure counsel.
The Kansas City Airport System is an enterprise fund department of the City of Kansas City, Missouri, and is supported wholly by airport user charges. No general tax fund revenues are used for the administration, promotion, operation or maintenance of the airports in the system.
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