Kansas City, Missouri, issued $69.7 million in bonds to finance capital improvement projects.
The city sold the bonds in two series. The tax-exempt Series 2024A bonds, consisting of $57.2 million, mature between 2025 and 2044, yielding between 2.61% and 4.05%. The taxable Series 2024B bonds, consisting of $12.5 million, mature between 2025 and 2044, yielding between 4.83% and 5.51%. The securities received a rating of Aa3 from Moody’s Investors Service and AA from S&P Global Ratings.
“The Aa3 issuer rating reflects the city’s healthy economic base, adequate financial position and elevated leverage compared to peers,” Moody’s analysts wrote.
The city will use the Series 2024A proceeds to upgrade its infrastructure and parks and entertainment facilities. It will spend the Series 2024B proceeds on affordable housing improvements.
The issuance comes amid a flurry of investment in Kansas City infrastructure. Last year, the city announced a partnership with the U.S. Department of Transportation that could see a $15 billion infusion into infrastructure projects. More than two-thirds of that financing, which will include bonds, loans, and grants, will be directed toward a new rail line that connects Kansas City International Airport with the city’s downtown area.
The bonds are general obligations of the city, backed by its full faith and credit and payable by property taxes.
Siebert Williams Shank & Co, LLC served as lead underwriter on the issuance, purchasing the bonds for $75 million. The price reflected a premium of more than $5 million. Hilltop Securities Inc and Moody Reid Financial Advisors acted as municipal advisors.