Bond Sales Expected for Las Vegas Project

An investment group said that Brightline expects to offer $3.2 billion of tax-exempt private equity bonds to help finance construction of a high-speed rail line between Las Vegas and Southern California.

“The real goal is to have a single seat from (Los Angeles) Union Station to Las Vegas. That’s the service we want,” said Fortress Investment Group co-founder Wes Edens in an interview with Forbes magazine.

Brightline has proposed building 169 miles of track that would be good for 200-mph operation by electric trains built by Siemens.

The route would terminate near Victorville, California, and use Metrolink’s right of way to reach Los Angeles.

In California, much of the route would run parallel to Interstate 15.

Five banks have reportedly agreed to underwrite the bonds although no date has been announced for the sale of the bonds.

The magazine article noted that the interest rate and expected yield won’t be known until marketing of the bonds has begun.

During the Forbes interview, Edens said the cost of the high-speed corridor from Las Vegas to downtown Los Angeles could cost $8 billion, with debt financing providing $6 billion of that amount.

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