District completes sale of second and final set of bonds
Money will support later phases of bond program improvement work
Adams 12 Five Star Schools has completed the planned second and final sale of general obligation bonds as part of the successful passage of a $350 million bond program approved by the Five Star community in 2016.
The sale of $65 million in bonds was completed Nov. 28, 2018, and will support later phases of school and facility improvement work planned as part of the five-year bond program. An initial sale of $285 million in general obligation bonds was completed in December 2016 shortly after approval of the bond question.
The second set of bonds will be paid off over an 18-year period with principal paid off at various points during that time span. It is scheduled to be retired in 2036 along with the original $285 million bond sale.
The most recent bond sale reaffirms a district promise to the community to issue bonds without a related tax increase. The estimated maximum repayment of about $596 million is also roughly $57 million less than originally estimated.
Five Star Schools Chief Financial Officer Suzanne DeYoung said the district benefited from a recently-upgraded S&P Global credit rating as well as recent tax reforms that have created a lack of supply of municipal bonds and, thus, a higher demand.
The success of the transaction was made possible thanks to the support and partnership of Hilltop Securities and RBC Capital Markets.