- Proposed $2 billion senior bonds garner BBB- rating from S&P
- Investment-grade ratings may widen market for rail line’s debt
Brightline, the first private US passenger railroad in more than a century, obtained investment-grade ratings on its proposed senior municipal bonds ahead of a planned $3.6 billion debt refinancing.
S&P Global Ratings assigned a preliminary BBB- rating, its lowest investment grade, to $2 billion of tax-exempt Brightline bonds. The bonds are likely to be issued this month by the Florida Development Finance Corp. Brightline expects Assured Guaranty to insure $1 billion of the tax-exempt debt.
The Fortress Investment Group-backed railroad, which started long-distance service between Miami and Orlando in September, also plans to sell $1 billion in speculative-grade corporate bonds yielding in the high-single to low-double digits, Bloomberg previously reported. Another $1.6 billion of debt and equity could come from Fortress or other investors.
Bloomberg Markets
By Martin Z Braun
April 2, 2024