Brightline West Oversubscribed for $2.5 billion PABs Offering

Brightline West’s plans for a high-speed rail connection between Los Angeles and Las Vegas won a vote of confidence from municipal bond investors in March. The project’s $2.5 billion Private Activity Bond (PAB) issuance was significantly oversubscribed. The successful offering will be used to refinance some existing debt and invest in ongoing construction of the $12.4 billion megaproject, which will develop a 218-mile high-speed rail line between Rancho Cucamonga, California and the Las Vegas strip.

The project broke ground almost a year ago, and was awarded a $3 billion federal grant from the Biden administration in late 2023. However, the federal grant agreement for the project wasn’t finalized until last September. The current financing PABs financing was particularly important because it will unlock a significant component of that federal grant funding: the first $4.8 billion of eligible project costs are subject to a 50% federal cost share.

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