MIAMI — Florida passenger rail operator Brightline is reissuing almost a billion dollars of private activity bond debt for which a mandatory redemption has come due.
The more than 1,300-page Series 2025B “Limited Remarketing Memorandum” distributed to interested parties Tuesday has a term rate of 10%, but is expected to yield 15% to bondholders of Series 2025A bonds. In addition, bondholders are being offered a security lien on Brightline West equity.
Earlier this summer, Brightline deferred an interest payment on $1.2 billion of debt as it issued another $400 million in private activity bonds to advance planning for expansion west of Orlando International Airport along the proposed public-private Sunshine Corridor and a route to Tampa down the median of Interstate 4 [see “Brightline seeks private activity bonds …,” Trains.com, July 14, 2025]
More recently, the company was sued by host railroad Florida East Coast over plans to implement commuter service out of Miami [see “Florida East Coast sues …,” Trains.com, Aug 1, 2025].
The bond document issued by the Florida Development Finance Corp. contains a wealth of financial information, including a Dec. 31, 2024, balance sheet listing $7.2 billion of assets and $6.2 billion of liabilities, of which $4.4 billion is long-term debt that does not include the $985 million. The value of real estate holdings is also noted.
It also confirms trends showing the rise of overall revenue and Miami-West Palm Beach ridership now that all 16 daily round trips have been restored with two extra coaches. Compared with June 2024, the average fare in June 2025 for both short- and long-distance rides has dropped from $55.11 to $53.09 — off 4% — but overall revenue is up 11%, with the biggest gains coming in South Florida-Orlando trips, up 15%. Gains were fueled in part by the ability to handle more high-value Premium passengers that was lost when frequencies were reduced to create longer trains. Premium capacity will double once Brightline receives an additional shipment of Premium coaches from Siemens by the end of 2025.
Higher interest on the new bonds and other debt, however, will require this kind of revenue expansion to continue at an accelerated rate to forestall future cash-crunch situations.
As for Brightline West, preparations are underway for construction to begin on the Las Vegas, Nev., to Rancho Cucamonga, Calif., high-speed route largely in the median of Interstate 15, but the company has declined to comment to Trains.com on when visible activity might occur
