16 Nov 2010
Significant Savings Achieved Through Competitive Process, Build America Bonds Program
The Dallas Independent School District sold $950.3 million in bonds today at a significantly reduced rate through a competitive process as part of the 2008 bond program.
The $1.35 billion bond program is renovating more than 200 Dallas ISD campuses, as well as building 14 new schools and additions to 13 campuses.
The bonds, issued through the federal Build America Bonds program as part of the federal stimulus act, were bought by Barclays Capital, Inc. at a subsidized interest rate of 4.03 percent. Because of the Build America Bonds program and competitive process, the district received its lowest interest rate for school construction bonds in the last 40 years.
"This illustrates that using a competitive sale methodology can save the school district millions of dollars," said Chief Financial Officer Larry Throm. "By taking advantage of the Build America Bonds program, which ends December 31 of this year, we saved more than $100 million over the 25-year life of the bonds. Savings that significant will stretch our bond funds even further. That's better for our community, our schools and most of all, our students."
Today's sale completes the sale of bonds from the $1.35 billion bond program approved by voters in 2008. $400 million of bonds were sold in December 2008 at an interest rate of 5.68 percent.