(KANSAS CITY, Ks.) —The Kansas City Board of Public Utilities (BPU) recently refinanced two bond issues, the 1998 issue and the 2004-B issue, totaling approximately $111 million. While the initial transaction was to include only $58 million of bonds that met a 3 percent net present value savings (for an estimated total savings of $3.9 million), the bond market shifted even more favorably just before the transaction took place on August 7, 2012 and the amount of bonds BPU was able to sell totaled approximately $111 million.
The Kansas City Board of Public Utilities (BPU) recently refinanced two bond issues, the 1998 issue and the 2004-B issue, totaling approximately $111 million. While the initial transaction was to include only $58 million of bonds that met a 3 percent net present value savings (for an estimated total savings of $3.9 million), the bond market shifted even more favorably just before the transaction took place on August 7, 2012 and the amount of bonds BPU was able to sell totaled approximately $111 million.
This successful bond sale and refinance transaction will result in a future value savings to BPU of $11.8 million over the life of the bonds, with an average savings of $550,000 annually until 2032.
The transaction will close on September 7, 2012.