Brightline Florida Rolls Over $985 Million Debt with 14.89% Yield, Adds Junior Claims to Expansion Plans

Brightline Florida, a private rail line connecting Orlando to Miami, is rolling over $985 million of debt with a 14.89% yield and a 10% coupon. The company has faced financial hurdles due to low ridership and revenue projections, leading to downgrades from S&P Global Ratings and Fitch Ratings. Investors have negotiated changes to the security package, including junior claims on the Tampa expansion and a common equity interest in the Las Vegas line.

Brightline Florida, a private rail line connecting Orlando to Miami, has rolled over $985 million of debt with a 14.89% yield and a 10% coupon. The move comes amidst financial challenges for the rail project, including low ridership and lagging revenue projections [1]. This has led to downgrades from S&P Global Ratings and Fitch Ratings, with both agencies downgrading Brightline’s senior muni bonds deeper into junk territory [2].

The debt rollover involves 85% of current bondholders, led by Nuveen LLC and First Eagle Investment Management, who have negotiated changes to the security package. Investors will receive junior claims on Brightline’s planned expansion to Tampa and a common equity interest in the company's planned line connecting Southern California to Las Vegas, contingent on lender consent [1]. The bonds are expected to price on Monday, with an existing debt coupon of 8.25% [2].

Brightline faces a 60-day deadline to provide a second-lien pledge on its west coast project and prefund interest and premium on the new bonds. Failure to meet these conditions could accelerate the tender date of the $985 million debt to October 28, 2025 [2]. The company is currently building a 218-mile high-speed rail project between Rancho Cucamonga in Southern California and Las Vegas, scheduled for completion in December 2028 [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/florida-s-brightline-train-rolling-over-985-million-debt-at-15
[2] https://www.bloomberg.com/news/articles/2025-08-08/florida-high-speed-rail-offers-investors-15-yield-to-roll-debt