The Denver Public Schools system is selling taxable securities with about $400 million in fixed-rate bonds and about $400 million of variable rate bonds, Bloomberg reports. The move will replace $750 million in variable-rate debt and terminate a swap agreed with JP Morgan in April 2008.
JP Morgan will be one of the underwriters on the new issue. Wells Fargo, Royal Bank of Canada and Bank of America will have swaps on the variable-rate debt after the transaction. The Denver City & County School District No 1 is restructuring the debt in the form of certificates as it is losing its standby purchase agreement with Dexia Credit Local.
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