Denver schools to pay millions to reverse controversial 2008 bond deal
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Denver Public Schools, which entered a risky and controversial variable-rate pension bond deal a few years ago, next week plans to finish converting those bonds to safer fixed-rate instruments — a reversal that will cost more than $120 million and put a dent in the district's budget for years to come.
In the proposed transaction, DPS will issue about $525 million in fixed-rate bonds to refund about $396 million in previous bonds with termination fees and other costs rolled into the total, said David Suppes, the district's chief operating officer.
"It will cost us some additional money," he said, "but it will give people comfort in that some outstanding risk is not there anymore."
Suppes estimated that the new deal will cost about $2 million per year in increased interest for the term of the bonds — another 25 years. But he adds that the original deal saved DPS about
Read more:Denver schools to pay millions to reverse controversial 2008 bond deal - The Denver Posthttp://www.denverpost.com/news/ci_23016666/denver-schools-pay-millions-reverse-controversial-2008-bond#ixzz2QN6MG8fO
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