CDE Lightband enters bond market to keep up with Clarksville growth

CDE Lightband has once again maintained a 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,” Clarksville Mayor Joe Pitts said. Out of 21 possible ratings assigned by Moody’s, CDE Lightband ranked at the third highest, meaning their bonds are considered low-risk and 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,” Brian Taylor, general manager of CDE Lightband said. 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 reliable service to a growing Clarksville. “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.

This article originally appeared on Clarksville Leaf-Chronicle: CDE Lightband is expanding their systems to meet Clarksville's needs