Memphis to Sell $233.2 Million of Bonds for Electrical System Upgrades
By Patrick Sheridan
The City of Memphis, Tenn., is issuing $233.2 million in bonds to help finance improvements to its electric system.
The Memphis Light, Gas and Water Division Electric System Revenue Bonds Series 2025 will consist of both serial and term bond with maturities ranging from 2026 to 2045, according to a preliminary official statement posted Wednesday on MuniOS.
The city was asked to sell the bonds by the board of commissioners of the behalf Memphis Light, Gas and Water Division, and the they are limited obligations of the division. They are payable solely from and secured by a pledge of the electric system pledged revenue.
Interest on the bonds is payable starting on June 1 and again on Dec. 1.
Proceeds will be used to help implement a grid modernization initiative that involves deployment of distribution automation devices within the electric system, and completion of an internal proprietary communications network for these and other devices. It will also involve putting in place an advanced distribution management system with upgraded operations capabilities. Money will also be used to cover some earlier incurred spending and pay issuance costs.
Memphis Light, Gas and Water is owned by the city and distributes electric power and natural gas in the area. For the fiscal year ended December 31 operating revenue totaled $1.5 billion and the system had approximately 439,607 customers.
Moody's and Fitch Ratings assigned Aa2 and AA ratings to the bonds, respectively.
Raymond James is the lead underwriter.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
September 25, 2025 14:08 ET (18:08 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
The 10 Best Companies to Invest in Now
14 Elite Funds and ETFs, and 5 Popular Funds That Just Missed the Mark
3 Stocks to Sell and 3 Stocks to Buy for October
The Top Funds for a Simpler Retirement Portfolio
United States