Transaction Details

City of Lexington

Municipal

Lead Bookrunner

The City of Lexington (the “City”), located in Henderson County between Nashville and Memphis, serves as a regional hub for commerce, education, and community life in West Tennessee. With a diverse local economy supported by manufacturing, healthcare, and small business development, Lexington continues to invest in public infrastructure and community services to support sustainable growth. Ongoing initiatives in economic development, utilities, and quality-of-life improvements reflect the City’s commitment to fostering opportunity and long-term stability for its residents and businesses.

Baird is proud to have a longstanding relationship with the City, having served as sole managing underwriter on multiple financings supporting the same system improvement initiatives — including the $22,000,000 Electric System Revenue Bonds, Series 2023, and the $12,000,000 Electric System Revenue Bonds, Series 2024. These prior transactions helped advance key phases of the City’s electric system and fiber infrastructure expansion, positioning the City for continued growth and modernization.

On September 23, 2025, Baird served as sole managing underwriter to the City of Lexington, Tennessee on its $4,000,000 Electric System Revenue Bonds, Series 2025 (the “Bonds”). Proceeds from the Bonds will finance improvements and extensions (the “Projects”) to the City’s electric transmission and distribution system and cover costs of issuance. The Projects will primarily fund the purchase and installation of fiber-based communications infrastructure.

The Lexington Electric System’s Aa3-rated Bonds were issued with a 30-year final maturity. Given the deal’s modest $4 million size, Baird strategically structured the financing with term bonds to enhance liquidity and attract broader investor participation.

With limited investor feedback ahead of pricing, Baird worked with the municipal advisor to designate the bonds as bank-qualified, which generated additional investor interest and improved overall marketability. Early in the order period, Baird received initial indications on the longer 2055 maturity and secured an additional investor read the following morning, allowing for a slight restructuring of terms that reduced the overall cost of finance for the City.

By the close of the order period, several maturities were subscribed up to 2x, with the remaining bonds fully placed except for the 2026 and 2027 maturities, which Baird underwrote. Through proactive structuring, close collaboration, and nimble execution in a challenging market environment, Baird delivered a strong result for the City and its long-term financing goals.