MIAMI — Virgin Trains USA found strong demand for the bonds to finance it expansion, selling $1.75 billion in private activity bonds this week.
Trade publication The Bond Buyer reported that the offering may have received up to $4 billion in orders for the bonds. It quoted Brian Wynne, head of public finance at Morgan Stanley, as saying “The feedback that we received was, ‘Wow, this is a whole new level of train transportation.’”
The money will help fund Virgin Trains’ expand from its current West Palm Beach-Miami service to Orlando and, eventually, Tampa.
“We received an overwhelming positive response from qualified investors who recognize our early success and the long-term potential for our business,” the company said in a statement quoted by the Palm Beach Post. “This financing provides Virgin Trains the necessary funds to start construction into Orlando, creating additional economic benefits for Florida.”
The sale comes just ahead of an event today in Miami to begin the rebranding of Brightline as Virgin Trains, with Virgin Group founder Richard Branson among those in attendance, and a Friday meeting in Orlando to request approval for an additional $950 million in private activity bonds. [See “Big week ahead for Virgin Trains USA’s Brightline,” Trains News Wire, April 1, 2019.] Trains News Wire will be attending the Miami event.
