City receives favorable rates for two bond issues

Lenexa received very competitive interest rates in the recent authorized issuance of 2009A General Obligation Bonds and 2009B General Obligation Refunding Bonds. The city issued $13,605,000 in debt, which will be used to fund capital improvement projects and to refinance debt previously issued for the City Center East special benefit district.

There was strong national interest for both bond issues, with the city receiving eight bids for the 2009A issue and seven bids for the 2009B issue from firms throughout the nation. The winning bid for the 2009A issue was submitted by BMO Capital Markets at a true interest cost of 3.096 percent. The winning bid for the 2009B issue was submitted by UBS Financial Services Inc. at a true interest cost of 3.529 percent.

The interest rates for both issues came in lower than last month’s forecast, which will result in lower interest costs for the city.

Projects in the 2009A bond issue include Prairie Star Parkway (K-7 Highway to Canyon Creek Boulevard), Street Light System acquisition from KCP&L, and watershed projects such as City Center Public Greenbelt & Streamway Improvements. For more information, contact the city’s Finance Department at (913) 477-7500.