Kansas DOT begins buyback of $100 million of its own bonds

By Sheri Kasprzak

New York, Oct. 14 - The Kansas Department of Transportation said recently it plans to buy back up to $100 million of its outstanding variable-rate demand bonds.

The department may purchase an amount not to exceed $100 million from its series 2000B-C bonds, 2002B-D bonds, 2004C bonds and 2008A bonds.

The purchases will be made in the secondary market, according to a statement released by the department.

"The purchase price of any bond that is tendered by a bondholder pursuant to the bond resolution but is not remarketed by the applicable remarketing agent is payable from funds drawn under the applicable liquidity facility with respect to the bonds," read the DOT statement.

The DOT also noted that since Sept. 25, it has made several draws on liquidity agreements to pay the purchase price of the tendered bonds, but it does not believe that reflects any difficulties on the part of the DOT, but rather disruptions in the variable-rate demand bond market and broader financial markets.

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