First round of bonds totaling $250 million sold
Competitive bids reflect market's high level of confidence in the district
In April 2015, BVSD issued the first set of bonds for the $576 million bond program approved by voters last November. The bids received reflect the bond market's very high level of confidence in the district, which results in lower interest cost for taxpayers. Proceeds from the $250 million issuance will fund the first phase of the bond program.
The district accepted offers from prospective underwriters for its Series 2015 General Obligation Bonds. The district's bonds carry high-grade ratings from Moody's ("Aa1"), Standard & Poor's ("AA") and Fitch ("AA+"). The bonds were offered using a competitive bid process on the internet, and BVSD received six bids for the full amount of the issue. The best bid was submitted by Morgan Stanley, with a True Interest Cost ("TIC") of 3.857%. The five other bidders were Citigroup, Bank of America Merrill Lynch, Wells Fargo Bank, J.P. Morgan and Barclay's Capital. The other five bids ranged from 3.874% to 3.994%. Morgan Stanley's bid, which produces the lowest overall cost to the district, was accepted.
District sells Series 2017 Bonds
On Thursday, March 16, the Boulder Valley School District offered its Series 2017 General Obligation Bonds to the public in a competitive bid process.
The total amount issued will be $283,740,000, including $190,000,000 issued for facilities improvements to be made throughout the District as the second round of debt for the 2014 bond program, Building for Student Success, as approved by the District’s voters in the election of November, 2014. $93,740,000 of the 2017 Bonds are being issued to refinance the District’s Series 2007 General Obligation Bonds. The refinancing will lower the interest rate on this portion of the District’s debt, and will allow it to be paid off sooner, producing a total debt service savings of more than $22 million.
Boulder Valley’s bonds are rated by Moody’s (Aa1), Standard & Poor’s (AA+), and Fitch (AA+). The rating from Standard & Poor’s represents an upgrade to the district’s prior AA rating and is the highest rating assigned by Standard & Poor's for any Colorado school district. The 2017 Bonds will be underwritten by Morgan Stanley, who submitted a bid resulting in the lowest overall cost to the District.
District sells Series 2019 Bonds
On January 23, 2019, Boulder Valley School District offered its Series 2019 General Obligation Bonds in a competitive bid process.
The sale had two components, a refunding of $172.18M of 2009 debt and the final issuance of the 2014 authorization of $136.52M. The refunding generated savings to taxpayers of $33.0M over the next 15 years, at a net present value savings of $26.4M. Related to the final issuance of voter-approved debt, the Series 2019A Bonds generated a premium of $20.9 million, less issuance costs, to support the Educational Facilities Master Plan.