Brightline West Passenger Rail Project to price up to $3.2 billion municipal green bonds

By Rebecca Melvin

New York, Sept. 29 – California Infrastructure and Economic Development Bank and Nevada Department of Business and Industry are planning to issue up to $3.2 billion of municipal green bonds (series 2020B) in multiple tranches for the Brightline West Passenger Rail Project, a high-speed rail service between Las Vegas and Los Angeles, according to a market source.

Both issuers will price the bonds with five-, seven-, 10- and 30-year tenors in tranches of $150 million to $300 million each.

There is a call option at a make-whole premium, which will be determined prior to pricing.

There is a first priority lien on substantially all assets of the company, including revenues, right-of-way, stations and station land, maintenance facilities, rolling stock, leasehold interests, reserve funds and equity.

Morgan Stanley is bookrunner for the senior secured bonds.

Co-managers are BofA Securities, Citigroup, Deutsche Bank, Jefferies, Piper Sandler, UBS, Academy Securities and Oppenheimer.

The bonds are expected to price the week of Oct. 5.

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