Brightline West Secures $2.5 Billion in Private Activity Bonds for High-Speed Rail

Brightline West has secured 2.5 billion USD in senior subordinated private activity bonds to support the development of its high-speed rail project connecting Southern California and Las Vegas.

The bonds are part of the 5.5 billion USD in tax-exempt private activity bond volume cap allocations granted by the United States Department of Transportation for the project.

Orrick served as bond counsel to the California Infrastructure and Economic Development Bank and the Director of the State of Nevada Department of Business and Industry in connection with the financing.

Brightline West is a privately owned and operated high-speed rail system being developed by DesertXpress Enterprises, LLC. The company is affiliated with Brightline Holdings LLC, which is primarily owned by funds managed by an affiliate of Fortress Investment Group LLC.

Brightline Holdings has been involved in developing intercity passenger rail services in the United States since 2012, including Brightline Florida, which operates a 235-mile rail service between Miami and Orlando.

The Brightline West rail system will span 218 miles between Rancho Cucamonga, California, and Las Vegas, Nevada. The fully electric trains will be designed to reach speeds of up to 186 miles per hour, with a travel time of approximately two hours between the two destinations.

The project has secured long-term agreements for necessary rights-of-way, including leases, licenses, and easements with the states of Nevada and California, as well as the federal government, for passenger rail access along the I-15 corridor.

The high-speed rail project is expected to provide economic benefits to both Nevada and California through job creation and regional economic activity. It is also positioned as a transportation alternative with environmental advantages, supporting broader climate initiatives by reducing highway congestion and associated emissions.

Fortress co-founder Wes Edens said:

Connecting Las Vegas and Southern California will provide wide-spread public benefits to both states, creating thousands of jobs and jumpstarting a new level of economic competitiveness for the region.