Virgin Rail - Brightline IPO, Bonds & Rebranding

This is a forum for all operations, both current and planned, of Virgin Rail USA formerly known as Brightline, and Virgin Worldwide Rail operations, past and present. Official Sites:
Current Brightline: https://gobrightline.com/" onclick="window.open(this.href);return false;
Virgin USA: https://www.virgin.com/richard-branson/ ... trains-usa" onclick="window.open(this.href);return false;
Virgin UK: https://www.virgintrains.co.uk/" onclick="window.open(this.href);return false;

Moderator: CRail

gokeefe
Posts: 11299
Joined: Sat Feb 16, 2008 12:28 pm
Location: Winthrop, Maine

Re: Virgin Rail née Brightline/AAF Orlando - Miami FL FEC

Post by gokeefe » Tue May 28, 2019 6:21 pm

Mr. Norman,

I wondered if you would post this one. Agreed that the yield environment has made for some "interesting" choices lately. "Unrated"' isn't exactly a term one normally associates with yields as low as 7%.
gokeefe

Gilbert B Norman
Posts: 13857
Joined: Fri Mar 12, 2004 6:52 am
Location: Clarendon Hills, IL (BNSF Chicago Sub; MP 18.71)

Re: Virgin Rail née Brightline/AAF Orlando - Miami FL FEC

Post by Gilbert B Norman » Tue Jun 18, 2019 10:00 am

Mr. O'Keefe, to my knowledge unrated means that, since the issues have been privately placed with investors "in the know", no rating agency (Moody's, S&P) have rated them.

gokeefe
Posts: 11299
Joined: Sat Feb 16, 2008 12:28 pm
Location: Winthrop, Maine

Re: Virgin Rail née Brightline/AAF Orlando - Miami FL FEC

Post by gokeefe » Tue Jun 18, 2019 9:59 pm

Mr. Norman,

I took another read through the article just to be sure ...

Impression remains the same. This is speculative investing offered on the open market in the tax-exempt sector. Note the 2.5% default rate. Also notable that the story appears to be pointing at early indications of an asset bubble.

"Unrated" in this case is simply "buyer beware".
gokeefe

Gilbert B Norman
Posts: 13857
Joined: Fri Mar 12, 2004 6:52 am
Location: Clarendon Hills, IL (BNSF Chicago Sub; MP 18.71)

Re: Virgin Rail née Brightline/AAF Orlando - Miami FL FEC

Post by Gilbert B Norman » Wed Jun 19, 2019 7:06 am

Mr. O'Keefe, I've been "stung" once in my investing life (Lehman; sold eventually @ .12 on the dollar). Wasn't fun waking up that '08 morning Sep 16.

Yes, I will concede; Brightline/Virgin is here to stay - and it will build out to Orlando Airport. I'm not sure what Sir Richard's horning in has proven; maybe if I worshipped celebrities I would.

What lacks today is public circulation of ridership and revenues since true "comparos", i.e MIA-WPB year to year, starting with May, are available. Who knows just how "pretty" those will look.

Don't rule out a "Tallytrough" feeding - yet.

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