MIAMI — Brightline Holdings has received clearance to sell up to $1 billion of tax-free debt to finance its expansion to Orlando, Bloomberg reports.
The board of the Florida Development Finance Corp. approved the financing Monday. Brightline, backed by Fortress Investment Group, expects to sell $785 million in short-term debt but could sell the full $1 billion.
In a meeting prior to the vote, Brightline Chief Financial Officer called the expansion to Orlando “the most critical component of our business model.” A memo from PFM Financial Advisors projects the completed project will allow Brightline to go from 1.29 million passengers and $39 million in revenue this year to 7.9 million passengers and $733 million in total revenue in 2025, with average fare for 2025 to average $29.30 thanks to the longer trips. That would be a 58% increase from the average for its current Miami-West Palm Beach service.
“We’ve made tremendous progress, achieving more than 80% completion on Brightline’s Orlando extension,” Brightline spokesmans Ben Porritt said in a statement to Bloomberg. “We appreciate the support of the FDFC board as we complete funding, as originally planned, for the remaining elements of the project.”
Brightline expects to start Orlando service in 2023. The company has previously sold $3.2 billion of tax-exempt debt to fund the expansion.
Tell me again how Brightline is building their railway with no public money.
I’ll wait.
They’ve now sold $4BN worth of taxpayer backed bonds. Because you know who will be on the hook if the project fails? Florida taxpayers. I’m actually fine with this, but let’s not pretend that this is being built exclusively with private money. it’s absolutely not.
All these big plans & ridership forecasts but what really is their current ridership & farebox totals? If it was that great they’d be more public about it than their current secrecy bespeaks.
Remember, “No one has ever built a statue to a critic.”
Their overall business plan is to develop the land next to and adjacent to the tracks and stations. Their rental income will more than offset the losses on their railroad. I.e. they are turning a skyscraper sideways. Has anyone ever charged you a toll to use a building’s elevator? Brightline is charging a fee to ride their trains; so the analogy breaks down there.
It has been an education for me to follow the weekly progress reports by “Roaming Railfan” on this project. On Youtube, complete with drone coverage, the videos are a fascinating primer on “How To Build A Railroad.” Recommended to all.
I agree George. I too have been following his video reports on this buildout. Very fascinating, especially the material between Cocoa and Orlando which was an all new terrain build out, bridges and all.
Would be interesting to benchmark this work and see what it would take to build more dedicated passenger ROW’s nationally.
I too have been watching most of his updates. And Brightline has given him VIP treatment, allowing him access their Orlando Airport yard and station to document and publicize their project. I hope to take a vacation to Florida next spring just to ride the new service.
I wonder when they will have their IPO for of CA & NV TEI bonds for their Victorville to Las Vegas line? Interest rates are higher now, then when the postponed it last year.
Thanks for the tip on the Youtube videos. I’ll be watching them. I am generally interested in construction projects, especially railroads. I enjoy watching it come together a piece at a time.
Brightline is an impressive outfit. I hope they can find opportunities in other places as well.