Brightline Florida Secures $490 Million in New Financing

Brightline Florida, the high-speed passenger rail system connecting Miami to Orlando, has reached a significant agreement with its financial stakeholders to secure $490 million in new financing. This restructuring will significantly reduce the company's debt and provide ample liquidity, ensuring the continued operation of its Miami-to-Orlando high-speed rail services.

The agreement, known as a Restructuring Support Agreement (RSA), was reached with existing stakeholders, including Assured Guaranty, Inc. and an ad hoc group of Mutual Fund bondholders. The new financing will consist of $140 million in additional senior debt and $350 million in new junior debt. The $2.2 billion Brightline Trains Florida LLC Issue, Series 2024 (Tax-Exempt) Bonds and the existing bond insurance policy issued by Assured Guaranty will remain in place. Similarly, the $985 million Brightline Florida Passenger Rail Expansion Project, Series 2025B Bonds, the $925 million AAF Operations Holdings LLC Issue, Series 2024 (Tax-Exempt) Bonds, and the $285.7 million AAF Operations Holdings LLC Issue, Series 2024A (Tax-Exempt) Bonds will remain outstanding, with no reduction in aggregate principal amounts.

To implement the RSA, certain Brightline parent entities will commence prearranged Chapter 11 processes in the United States Bankruptcy Court for the District of New Jersey. However, Brightline Trains Florida LLC, which operates the train service, will not file for Chapter 11 and will continue to operate in the ordinary course under the leadership of its existing management team. Brightline Florida Holdings LLC and AAF Operations Holdings LLC, which hold the rights to develop commuter service in Miami-Dade, Broward, and Palm Beach Counties, and the Tampa development rights, respectively, are also not part of the Chapter 11 process.

The restructuring is expected to bolster Brightline's financial health, allowing the company to pursue multiple growth initiatives. These include the development of additional stations along its corridor, including in Cocoa, the development of commuter access in Miami-Dade, Broward, and Palm Beach Counties, and the expansion of the passenger rail system from the Orlando station to Tampa.

In the first eight months of 2026, Brightline has demonstrated a 17% year-over-year increase in total revenues, with 2026 year-to-date ridership growing by 14% and revenue by 17% through the month of August. The company continues to reinvent train travel, offering a hospitality-centric experience at a comparable price to driving or flying.

Brightline's legal and financial advisors, including Skadden, Arps, Slate, Meagher & Flom LLP and Cole Schotz LLP, Perella Weinberg Partners LP and Houlihan Lokey Capital, Inc., and Alvarez & Marsal North America, LLC, have played crucial roles in facilitating this restructuring.