First round of bonds totaling $187 million sold

On Tuesday, April 18, 2023, the Boulder Valley School District successfully sold $187,335,000 of General Obligation Bonds as authorized by voters at the November 2022 election. The bonds were sold competitively with bids received electronically via the internet.  

The winning bid was submitted by BofA Securities, Inc. with a True Interest Cost of 3.84%.  The cover, or second best bid, was submitted by Morgan Stanley & Co, LLC.  There were seven additional firms that submitted bids including Jefferies LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Bank, RBC Capital Markets, BNYMellon Capital Markets, and Robert W. Baird & Co., Inc. 

This bond issue provides funds for District-wide capital improvements described in the 2022 Facilities Critical Needs Plan as approved by voters to be completed over the next several years. The tax-exempt bond issue was structured with maturities over the period from 2023 to 2052. After closing of these bonds, the District will have $162,665,000 of general obligation authorization remaining to use for additional projects within the critical needs plan.

The strong bids received on the sale date are a reflection of the investor demand for high quality bonds and the strong financial stewardship and credit fundamentals of the Boulder Valley School District. The sale of the 2023 Bonds continues the District’s past performance of receiving considerable investor interest due to the District’s strong credit ratings of Aa1 from Moody’s and AA+ from S&P.

On Tuesday, April 7, 2026, Boulder Valley School District successfully sold a combined $329,605,000 of General Obligation Bonds for new‐money and refunding purposes. The District’s Series 2026A Bonds were issued pursuant to voter authorization approved at the November 2022 election and represent the second installment of bonds authorized at that election, following the initial issuance in 2023.

The Series 2026A Bonds were issued in the amount of $112,665,000 and sold through a competitive sale. The District received eight bids, with less than one basis point (0.01%) separating the winning and second-place bids. This exceptionally tight bid spread demonstrates the strong investor demand for the District’s bonds, reflecting its high credit quality and strong market recognition. The all-in borrowing cost for the Series 2026A Bonds, as measured by the
All-In True Interest Cost (TIC), was 4.301%. 

The District’s Series 2026B Bonds were issued to refinance all outstanding maturities of its previously issued Series 2015 Bonds. The 2015 Bonds were authorized by voters at the November 2014 election, with approximately $235 million currently outstanding. The Series 2026B Bonds were sold through a competitive sale in the amount of $216,950,000 and received six bids.

Refunding the 2015 Bonds enabled the District to reduce interest costs and generate cash flow savings through the final maturity in 2044. Total aggregate cash flow savings over the next 18 years are estimated at approximately $73.5 million. When discounted to the closing date of the Series 2026B Bonds using the All-In TIC of 3.669%, the refunding produces net present value (NPV) savings of approximately $24.7 million, or 10.5% of the refunded par amount.

Overall, the successful pricing reflects strong investor demand for high-quality municipal bonds as well as the District’s favorable credit profile and established name recognition. The District maintains strong credit ratings of Aa1 from Moody’s Investors Service and AA+ from S&P Global Ratings. The Series 2026A and Series 2026B Bonds are scheduled to close on April 21, 2026, at which time the District will be able to deploy proceeds from the Series 2026A Bonds toward voter-authorized capital projects, and the outstanding Series 2015 Bonds will be prepaid
in full using proceeds from the Series 2026B Bonds.