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Restructuring of district bond debt saves taxpayers another $4.2 million
On Thursday, December 5, 2013, the Cherry Creek School District successfully sold $31,215,000 of District General Obligation debt for savings of $4.2 million. 
The bonds were sold competitively with bids received electronically via the internet.  The winning bid was submitted by J.P. Morgan Securities with a True Interest Cost of 1.998%.  The cover, or second best bid, was submitted by Citigroup Global Markets. 
There were eleven additional firms that submitted bids including Robert W. Baird & Co., Stifel Nicolaus & Company, Morgan Stanley & Co. and Wells Fargo Bank as the next best bidders.
The issue refinances $35,345,000 of Series 2004 bonds which were outstanding and which carried an interest rate of 4.3%.  The bond issue was structured as tax exempt bonds maturing over the period of 2014-2022. 
 “This transaction reduced the outstanding debt, while also lowering the average interest rate from 4.3% to 2%,” Guy Bellville, Cherry Creek School District CFO said. “The resultant savings are passed directly to the taxpayers of the District through reduced tax collections totaling over $4.2 million spread over these next 10 years.”
The very aggressive bids received today are a reflection of the investor demand for high quality bonds as well as the historically low interest rates existing today, according to the district’s financial advisors.
Earlier this year on March 1, 2012, the Cherry Creek School District successfully sold $48,855,000 of District General Obligation refunding bonds for savings of $4 million. 
Cherry Creek is an extremely strong credit, as evidenced by the Aa1/AA ratings assigned by Moody’s and Standard & Poor’s, respectively; and the strong bids received and the number of bidders that participated are a reflection of the district’s quality, as perceived in the credit markets.


Dec. 11, 2013


Posted 12/11/2013 12:00 PM
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Cherry Creek School District No. 5 does not discriminate on the basis of race, color, national origin, sex, age or disability in admission to its programs, services or activities, in access to them, in treatment of individuals, or in any aspect of their operations. The lack of English language skills shall not be a barrier to admission or participation in the district’s activities and programs. The Cherry Creek School District No. 5 also does not discriminate in its hiring or employment practices. This notice is provided as required by Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and the Americans with Disabilities Act of 1990. Questions, complaints, or requests for additional information regarding these laws may be forwarded to the designated compliance officer: District Compliance Officer or directly to the U.S. Department of Education, Office for Civil Rights, Region VIII, Federal Office Building 1244 North Speer Blvd., Suite #310, Denver, CO 80204.

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