1 minute read | November.26.2025
The Kerrville Public Utility Board (KPUB) successfully closed a groundbreaking financing that combines tax-exempt power supply revenue bonds with a low-cost state loan to fund the utility’s first power plant – a critical step toward energy independence for the Texas utility.
Orrick served as underwriter’s counsel to BofA Securities, who was senior manager on the deal. Co-managers in the deal were Wells Fargo Securities, RBC Capital Markets and PNC Capital Markets.
The innovative financing structure was named The Bond Buyer’s Deal of the Year in the small issuer category.
BofA Securities is the corporate and investment banking division of Bank of America, one of the world’s leading financial institutions.
The deal showcases how municipal utilities can successfully access capital markets to fund critical infrastructure. By creating a public facilities corporation and obtaining financing for its first power generation facility, KPUB is making a transformative investment that will enhance energy reliability and independence for the community it serves. The deal’s structure provides a model for other municipal issuers pursuing infrastructure investments.
The Orrick team was led by Jerry Kyle and Bill Medaille.