CHICAGO — Menasha, Wis., expects to close Wednesday on the sale of its electric utility assets to WPPI Energy in an $18 million sale-leaseback transaction to provide the bulk of funds needed to cover the city’s proposed settlement with holders of $23 million of defaulted steam plant notes.

The city defaulted on the steam plant anticipation notes, which carried an appropriation pledge, in September 2009. Menasha would pay holders $17.5 million under a proposed cash settlement to be funded with the asset sale proceeds, advancing the city’s efforts to put the steam-plant saga behind it and to rebuild its credit.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.