By Martin Z Braun, Reshmi Basu, and Eliza Ronalds-Hannon
Brightline Trains Florida, the private passenger railroad between Miami and Orlando, is deferring interest payments on some of its debt as it burns cash to offset lower-than-expected ridership and higher costs.
The Fortress Investment Group-backed railroad plans to defer a July 15 interest payment on about $1.2 billion of 10% and 12% coupon tax-exempt bonds, according to Ashley Blasewitz, a spokesperson for Brightline.
The deferred payments are the latest signs of trouble for Brightline in its attempt to bring high-speed rail to the main travel corridors of Florida. In 2024, traffic on the company’s 235-mile line came in 30% below what the company had projected earlier in the year.
The struggles to attract riders were part of the reason that S&P Global Ratings and Fitch Ratings in May downgraded Brightline’s senior muni bonds to junk and its corporate debt further into junk territory.
Interest payments will now be deferred on the company’s unrated junior muni bonds that were sold in 2024 through a state borrower known as the Florida Development Finance Corp.
Brightline didn’t specifically address why the company is delaying the payments.
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