Skip to comments.Denver Public Schools fixing out remainder of controversial 2008 debt deal (Michael Bennet)
Posted on 04/17/2013 8:28:40 AM PDT by george76
Denver Public Schools has quietly put the rest of its controversial variable-rate bonds with swaps on the market to sell as fixed-rate debt.
Five years after issuing a 30-year, $750 million school pension bond that turned into a financial quagmire for the district, DPS is selling $519.8 million in fixed-rate, refunding certificates of participation (COPs), set to price during the week of April 15, according to an announcement Friday from Fitch Ratings.
DPS "fixed out" or issued debt at a fixed interest rate half of the original $750 million in debt in 2011, and paid nearly $42 million in swap termination fees to New York-based JPMorgan to do so.
After the termination fees were added, the 2011 refinance came to $792 million, with $396 million in fixed-rate debt and $396 million in variable-rate debt.
Based on the fact that the district is issuing nearly $520 million in COPs this month to fix out the remaining $396 million debt, it would indicate that DPS is paying about $124 million in swap termination fees.
The district didn't issue a press release about the bonds.
The original 30-year, $750 million pension certificates of participation (PCOPs) in 2008 spearheaded by U.S. Sen. Michael Bennet, who was then DPS superintendent were issued with a variable interest rate
(Excerpt) Read more at bizjournals.com ...
Denver Public Schools to spend $177.4 Million to end swap deals ... arranged previously by Bennet .
Colorado Ping ( Let me know if you wish to be added or removed from the list.)
The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. Thomas Jefferson
Their motto should be “Funding your pension today, with your grandchildrens money from tomorrow!”
I think the tipping point will come when today’s youth realize how much Odumbass has stolen from them
And the faster we show them that, the better.
The firm that sold these were big Democratic supporters...of course
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