Brightline, a high-speed railroad in Florida, will be late with a scheduled July 15 interest payment for tax-exempt bonds issued last year. The bonds, with interest rates of 10% and 12%, are issued by the Florida Development Finance Corp., which may consider additional borrowing for expansion. Ratings agencies have downgraded bond issues due to rising costs. Brightline has seen ridership gains but is facing significant financial losses, with a net loss of $60 million in the first quarter of the year despite an increase in revenues and ridership numbers.
Brightline will delay the scheduled July 15 interest payment on tax-exempt bonds issued last year, with plans to make the deferred payment from operating cash or new funding.
The unrated bonds command interest rates of 10% and 12% and were sold through the Florida Development Finance Corp., which is considering an additional $400 million borrowing for expansion.
Despite steady gains in ridership, Brightline has been accumulating significant financial losses, with a net loss of $60 million in the first quarter, although improved from $116 million last year.
Fitch and S&P Global downgraded multiple bond issues earlier this year due to rising costs and lowered reserves, impacting Brightline's financial outlook.
Collection
[
|
...
]