CLARKSVILLE, TN – October 21, 2022– CDE Lightband has maintained, for 10 years now, the same, very high, Aa2 Credit Rating from Moody’s Investors Service on the upcoming Bond Issue. The Aa2 revenue rating reflects Clarksville’s strong economy, the system’s diverse and growing customer base and CDE Lightband’s solid fiscal management. All of these factors are expected to continue for the foreseeable future, signaling the need to expand the system.
“I am proud of the work CDE Lightband has done to provide a reliable electric and broadband system for our city. I am especially pleased with the financial management of the system at a time when rates and reliability have been in question in other parts of the country,” said Clarksville Mayor Joe Pitts.
Out of 21 possible ratings assigned by Moody’s, CDE Lightband ranked at the third highest, meaning their bonds are considered low-risk, high-grade investment quality. With such a strong rating in hand, CDE Lightband went to market on October 19, to issue thirty million dollars in bonds.
“In a market considered tough by all involved, CDE Lightband performed extremely well, with investor demand exceeding our supply by more than three times in many cases. This ensured that we received the lowest possible interest rate, which saves our ratepayers’ money,” said Brian Taylor, general manager of CDE Lightband.
Leaving the bond market with thirty million dollars, CDE Lightband will use these funds to construct multiple substations and other electric long-lived assets to provide the same steady, reliable service to a growing Clarksville.
Earning the highest achievable level, CDE Lightband has been awarded the diamond level RP3 designation through the American Public Power Association for the past sixyears, for its dedication in operating an efficient, safe and reliable distribution system.
“We recognize the tremendous growth in Clarksville and this bond issue helps with our 5-year cycle plans we have in place to ensure the continual reliability of our system as we keep up with the city’s expansion,” said Taylor.