The Wichita City Council on Tuesday approved the issuance of up to $40 million in industrial revenue bonds for Spirit AeroSystems Inc. to help the manufacturer finance upgrades to its facilities made in 2019.
The new IRBs, which were approved 6-0 as Council member Cindy Claycomb was not in attendance, come from the letter of intent for up to $280 million in IRBs approved for Spirit (NYSE: SPR) in 2016.
IRBs require no taxpayer commitment and the city acts only as a pass-through entity. However, using IRB financing can help the company secure a better interest rate on the projects.
The bonds will help cover 2019 upgrades including chillers, cranes, lighting and industrial waste line and road replacements.
(Read more: Wichita Business Journal)