The Internal Revenue Service has completed a routine audit of $250 million of Build America Bonds issued by Denver School District No. 1, with no change to the subsidy payments the issuer receives from the federal government.
The BABs were issued in December 2009 for school construction and repairs.
The IRS notified the school district of its favorable conclusion earlier this month and the district disclosed the closure of the audit in a notice filed with the Municipal Securities Rulemaking Board’s online EMMA system.
The $250 million of BABs were issued as part of a $318 million deal that also included two series of tax-exempt refunding bonds, one for $24.7 million and the other for $43.3 million.
The BABs were rated Aa3 by Moody’s Investors Service and AA-minus by Standard & Poor’s.
The IRS opened its audit of the bonds in January. It asked the school district to provide information on the bonds’ pricing and the use of proceeds.
The bond issue was part of $454 million approved by voters in November 2008, and was the largest amount of debt ever sought and approved in Denver.
The managing underwriter for the BABs was George K. Baum & Co. The underwriting syndicate included Piper Jaffray & Co., Harvestons Securities Inc., Stifel, Nicolaus & Co., JPMorgan, Wells Fargo Securities and RBC Capital Markets.
Bond counsel was Kutak Rock LLP, which filed the event notice on behalf of the district. Sherman & Howard LLC was special counsel and Bookhardt & O’Toole was underwriters’ counsel.