Fortress-Backed Brightline Rail Sells $770 Million of Debt at Steep Yields
- Brightline needs funds to finish critical extension to Orlando
- Debt backed by government payments still to be finalized
A Brightline passenger train stops at a station in Fort Lauderdale, Florida.
Photographer: Joe Raedle/Getty ImagesThis article is for subscribers only.
Brightline Holdings, the rail company backed by Fortress Investment Group, sold $770 million of unrated tax-free debt with hefty premiums for investors as it raises cash critical for the expansion of its underperforming Florida system.
The securities, subject to a mandatory put in October 2023, priced with a 7.25% coupon at 98 cents on the dollar, according to pricing wires viewed by Bloomberg. The primary collateral is funds from Miami-Dade and Broward counties in exchange for using the rail line for their commuter services. Those agreements are expected to be finalized next year.