Takeaways by Bloomberg AI
- Distressed-debt hedge funds Diameter Capital Partners, Redwood Capital and FourSixThree Capital bought about $190 million of Brightline’s municipal bonds from Nuveen.
- The sale cleared at 45 cents on the dollar, with the hedge funds considering the price to be a lowball offer, as some of the bonds had previously traded about 20 cents higher.
- Brightline will receive $258 million in bankruptcy financing from Assured and other muni investors, along with a commitment for another $490 million of debt after it exits Chapter 11.
Bloomberg Markets
By Eliza Ronalds-Hannon and Hema Parmar
September 30, 2026