Posts Tagged ‘Fortress Investment Group’

Las Vegas Project Bond Sale Reduced

October 22, 2020

The size of the public bond sale that will finance a Las Vegas to Southern California high-speed rail project has been set at $2.4 billion.

Fortress Investment Group in announcing the sale said it will be the largest offering of unrated municipal securities.

It also acknowledged that the sale is $800,000 less than what it previously expected to sell.

The rail line will be operated by Brightline and extend from Las Vegas to Victorville, California.

Eventually, trains will reach Los Angele over tracks used by commuter rail agency Metrolink. The service has thus far been branded as Xpress West.

Brightline Bond Pricing Delayed

October 16, 2020

The reluctance of investors to buy bonds has led Fortress Investment Group to delay the pricing of $3.2 billion in municipal bonds to finance construction of Brightline’s Xpress West high-speed rail line between Southern California and Las Vegas.

A news report this week said investors are shying away from helping to finance the project in an uncertain economic climate.

Bond prices were to have been set on Wednesday but that has been delayed to an unspecified date.

 Brightline, which operates intercity rail passenger service in Florida, has until Dec. 1 to sell the bonds under a deadline set by California officials.

Bond Sales Expected for Las Vegas Project

September 29, 2020

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.