MassTransitMag.com: Hefty debt, station naming rights: Takeaways from Virgin Trains' IPO
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"There can be no guarantee that we will be able to sustain successful operation of our Florida passenger rail system, or that we will complete our Florida passenger rail system as anticipated or at all," the company says in a document filed this week with the Securities and Exchange Commission.
The Brightline rail service launched in South Florida in 2018, and Virgin Trains USA has ambitious plans to connect Orlando and Tampa. Takeaways from the company's financial filings:
Virgin Trains USA needs money -- a lot of it. Virgin Trains expects to raise net proceeds of $467.8 million in the IPO. The company already has $700 million in debt, and it's looking to borrow $2.3 billion to fund its expansions from West Palm Beach to Orlando and Tampa, and also for a proposed line connecting Los Angeles and Las Vegas. That's after Brightline missed two 2018 deadlines to raise $1.15 billion in a sale of tax-exempt bonds. "We are currently in discussions for a commitment for a one-year bridge loan facility (subject to a one-year extension) to permit us to borrow up to $2.3 billion aggregate principal amount," the company says. "We do not yet have a commitment for such bridge loan facility."
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Next stop, Willoughby
~el Jefe :: RAILROAD.NET Site Administrator/Co-Owner; Carman at Naugatuck Railroad
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~el Jefe :: RAILROAD.NET Site Administrator/Co-Owner; Carman at Naugatuck Railroad
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