DCSD Announces Bond Sale

Douglas County School District Announces Bond Sale
Posted on 01/29/2019

The Douglas County School District (DCSD) has sold $249,975,000 in general obligation bonds as approved by voters in the November 2018 election. The proceeds from the bonds provide one-time funds for capital needs such as security upgrades, facility repairs, classroom furnishings, buses and technology.

“Today’s bond sale is a huge step in the right direction for the students, staff, parents and taxpayers of Douglas County,” said DCSD Chief Financial Officer Scott Smith. “There was high demand in the marketplace for the school district’s bonds. That, along with our strong credit rating, allowed us to secure a low interest rate and begin to move forward with much-needed improvements in our district.”

Total bond proceeds from the sale will be approximately $289 million. While the face value of the bonds is just under $250 million, based on the credit strength of DCSD and the current interest rate environment, the district’s bonds generated a premium, resulting in more funding for the school district to address additional capital needs. The result of today’s sale does not impact DCSD’s pledge of a no-new-taxes bond.

Jason Simmons, Managing Director at Hilltop Securities and financial advisor for DCSD, said the school district’s 2019 bonds were offered to investors using a structure that reflected current market demand.

“The structure of the bonds, combined with the high credit ratings of the Douglas County School District, generated significant interest from a broad group of investors, helping the school district achieve very favorable results that provide benefits to the district taxpayers,” said Simmons.

The bonds carry a “Aa1” rating from Moody’s and a “AA+” from Fitch, representing the high credit quality of the school district due to strong financial management practices and a robust tax base. No other school district in Colorado currently has a higher credit rating than DCSD.

All bonds were sold in alignment with ballot language from the recent election and carry a true interest cost (TIC) of 3.07%. The school district will have access to the funds from the sale on February 7.

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