ALERTS:
Search:
Skip Navigation LinksCherry Creek School District > District News > Bond sale nets $4 million in savings
Print this page

Bond sale nets $4 million in savings
On Thursday, March 1, 2012, the Cherry Creek School District successfully sold $48,855,000 of District General Obligation refunding bonds for savings of $4 million. 
 
The bonds were sold competitively with bids received electronically via the internet.  The winning bid was submitted by Piper Jaffray with a True Interest Cost of 1.6%.  The cover, or second best bid, was submitted by Morgan Keegan & Co. Inc. 
 
There were ten additional bidders including: Stifel Nicolaus & Company, Inc.; Hutchinson, Shockey, Erley & Co.; RBC Capital Markets; Wells Fargo Bank; Robert W. Baird & Co.; Morgan Stanley; US Bancorp; Guggenheim Securities; Bank of America Merrill Lynch; and J.P. Morgan Securities. 
 
The issue refinances $49,485,000 of Series 2004 bonds which were outstanding and which carried an interest rate of 4.4%.  The bond issue was structured as tax exempt bonds maturing over the period of 2014-2022. 
 
“This transaction reduced the outstanding debt by over $500,000, while also lowering the average interest rate from 4.4% to 1.6%,” Guy Bellville, Cherry Creek School District Chief Financial Officer said. “The savings are passed directly to the taxpayers of the district through reduced tax collections totaling over $4 million spread over these next 10 years.”
 
According to the district’s financial advisors, 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. 
 
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 are a reflection of the district’s quality, as perceived in the credit markets.  The district’s recent upgrade by Moody’s from Aa2 to Aa1 was also very beneficial and helped to attract strong investor interest.
Posted 3/2/2012 9:50 AM
Copyright © Cherry Creek School District #5, 4700 S. Yosemite Street, Greenwood Village, CO 80111 | 303-773-1184
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.

You are now leaving the Cherry Creek School District (CCSD) portal. Please note that CCSD does not control nor can it guarantee the accuracy, relevance, timeliness, completeness, or appropriateness of any content contained on web sites and/or pages outside of the official CCSD portal. The information or opinions contained on these web sites and/or pages do not necessarily represent the views of the CCSD.

With access to the internet comes the availability of material that may not be of educational value or appropriate for students. While at school, CCSD has taken precautions to restrict access to inappropriate or harmful web sites. However, on the internet it is impossible to control all materials and limit all access to information that has no educational value. CCSD firmly believes that the valuable information and the interaction available on the internet far outweigh the possibility that users may procure material that is not consistent with the educational goals of CCSD.