"The Fortress Investment Group-backed company that's building a high-speed passenger railroad between Southern California and Las Vegas plans to raise cash through borrowing and the sale of equity as construction costs increase. The company, called Brightline West, also plans to refinance $2.5 billion of debt issued in March as soon as next month, Chief Executive Officer Mike Reininger said in an interview Thursday, after earlier reporting the plans on a conference call with investors."
"Reininger didn't provide a new cost estimate for the 218-mile (351 kilometer) railroad, which was previously estimated at $16 billion. But he said it has increased due to rising labor and material costs, due in part by high demand caused by the proliferation of data centers, power plants and transportation projects. It will probably not be a surprise to anyone, that we are experiencing a construction market right now that is seeing increasing costs, Reininger said on the call."
Brightline West plans to raise cash through borrowing and equity sales and intends to refinance $2.5 billion of debt issued in March as early as next month. Construction costs for the 218-mile railroad have risen above the prior $16 billion estimate due to higher labor and material costs and increased demand from data centers, power plants and transportation projects. The railway will run trains up to 220 mph, cutting Rancho Cucamonga–Las Vegas travel to about two hours. The parent company’s Florida line faces financing pressure, with falling ridership, $5.5 billion of debt and a quarterly operating deficit.
Read at www.mercurynews.com
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