Bond Sale To Save Millions On New Terminal Financing
On behalf of the City of Kansas City, Missouri, the Kansas City Industrial Development Authority (“KCIDA”) successfully priced $504.7 million of its Series 2020A Special Obligation Bonds (AMT) and $57.2 million of its Series 2020B Special Obligation Bonds (non-AMT) and $70.38 million of its Series 2020C Taxable Airport Special Obligation Refunding Bonds for the Airport Terminal Modernization project through a negotiated sale led by Morgan Stanley & Co. LLC as senior manager.
The proceeds of the Series 2020A and B bonds will be used to fund costs of the City’s $1.5 billion Airport Terminal Modernization project, the Series 2020C bonds will be used to refund the Series 2013A General Improvement Airport Revenue Bonds to achieve debt service savings. The bonds are secured by net airport revenues paid to the trustee by the City.
“We capitalized on historically low interest rates when completing the final phase of financing for the New Terminal project. This 1.6% reduction in interest rate from our original financial modeling results in nearly $7 million dollars of annual savings. We will continue working toward the successful on-time and on-budget completion of the New Terminal and are gratified to be saving money over the repayment of these bonds.” said Pat Klein, Director of Aviation. Read the full news release.