Norton Rose Fulbright’s bond counsel work recognized in ‘Deal of the Year’ award

Norton Rose Fulbright has been honored as part of the Kerrville Public Utility Board Public Facility Corporation (KPFC) team that was recognized with a Deal of the Year award from The Bond Buyer for a first-of-its-kind municipal energy bond financing. The transaction was highlighted in the “Small Issuers” category.

KPFC issued US$74.4 million tax-exempt power supply revenue bonds and US$105 million taxable bonds to finance a 122-megawatt natural gas power generation facility for the benefit of the Kerrville Public Utility Board, which manages the electric utility system owned by the City of Kerrville, Texas. The project, expected to be operational in June 2027, is designed to enhance reliability and affordability for local customers.

This financing, for which the firm served as bond counsel, was the first use of revenue bonds by a Texas public facility corporation for the purpose of financing electric generation. It is also the first transaction executed by the Texas Energy Fund managed by the Public Utility Commission of Texas, and the only Texas Energy Fund transaction for a municipally-owned utility.

The transaction’s innovative structure allowed KPUB to develop the project as part of a public-private partnership, while still making use of tax-exempt bond financing.

Norton Rose Fulbright’s team included Stephanie Leibe, Arthur Kimball-Stanley (Austin) and Steve Watson (Washington, DC).

The Bond Buyer’s annual Deal of the Year awards recognize the most innovative deals, teams and firms driving infrastructure improvements and enhancing quality of life in US municipalities, as selected by the publication.