Kerrville, Texas, plans to sell about $76 million of municipal bonds for the construction of a natural gas-fired electricity generation facility.
The Kerrville Public Utility Board Public Facility plans to sell the Power Supply Revenue Bonds, Series 2025 A, due on April 15 from 2028 to 2047, according to documents posted Tuesday on MuniOS.
Interest is payable initially on Oct. 15, and on each Oct. 15 and April 15 thereafter.
The bonds are expected to be sold on June 25, with settlement scheduled on July 10.
Proceeds from the issuance will be used to finance the construction, equipping, furnishing, and placement in service of a new 122 megawatt Natural Gas-Fired Reciprocating Internal Combustion Engine Generation Plant to be owned by the board. Engine delivery is expected in August 2026.
The utility board serves about 25,000 customers throughout a 146 square mile area which includes Kerrville City, Center Point, Ingram, and surrounding areas in Kerr County.
The bonds will be special limited obligations of the utility board, secured and payable from a trust estate, which includes a first lien on pledged contract payments under a power sales agreement. As part of that agreement, the board will buy a portion of the output from the electricity generation facility in exchange for making the payments.
S&P Global Ratings has assigned a rating of A to the bonds.
BofA Securities is serving as the senior manager on the issuance.
Provided by Dow Jones Jun 18, 2025, 11:19:00 AM
By Zaeem Shoaib
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
June 18, 2025 13:19 ET (17:19 GMT)
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