FOR IMMEDIATE RELEASE:
Tuesday, April 24, 2007
Margaret Danuser, Debt Administrator, Department of Revenue
Denver Justice Center 2007 Mini-Bonds Draw More than $8.8 Million in Sales
and Smash Previous Sales Record
DENVER—Colorado residents overwhelmingly embraced the 2007 Denver Justice Center mini-bond program, purchasing over $8.8 million in mini-bonds in just five days and more than doubling Denver’s previous single mini-bond issue record of $4.1 million in 1990. Purchasers of the 2007 Denver mini-bonds will begin receiving their bond certificates this week. Bondholders must keep their bond certificates—which feature a rendering of the new courthouse—until the maturity date in 2022 to redeem them.
“The 2007 Denver Justice Center mini-bonds program—available only to Colorado residents—was the most successful in the City’s history with a response of more than twice what we expected,” said Denver Mayor John Hickenlooper. “We thank the voters who approved the Justice Center bond issue in 2005 and hundreds of 2007 mini-bond bond buyers for their investment in the safety and infrastructure of our community.”
Approximately 770 individuals, 35 percent of whom live in Denver, purchased mini-bonds at $500 each. The bonds will pay $1,000 at maturity in January 2022—a competitive annual tax-free yield of 4.75 percent*. For buyers in the 33 percent combined federal and Colorado tax bracket, that’s a taxable-equivalent yield of 7.09 percent. Denver’s general obligation bonds are rated Aa1/AA+/AA+ by Moody’s, Standard and Poor’s, and Fitch, respectively, the second-highest rating of investment-quality bonds.
Geared to individual, rather than institutional, investors, 2007 Denver mini-bonds were available for just one business week, from Monday, April 2 through Friday, April 6, 2007. Proceeds from the 2007 Denver mini-bonds will go toward construction of the City’s new Justice Center, which was approved by voters in 2005. The Justice Center complex, which includes a new courthouse, detention facility, and U.S. Post Office and parking garage, is located in downtown Denver between West Colfax Avenue and West 13th Avenue and Fox Street and Delaware Street. Construction is underway and is scheduled to be completed in late 2009.
The City and County of Denver previously offered mini-bonds in 1990, 1992, and 1999, providing $13 million for various City capital projects.
*For most initial purchasers, interest on the bonds (the difference between the initial purchase price of $500 and the $1,000 payable at maturity) is totally free from federal and Colorado income taxes. See the Official Statement section entitled “TAX EXEMPTION” for a detailed explanation.
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