Brightline West has secured $2.5 billion in senior subordinated private activity bonds to support the development of its high-speed rail project connecting Southern California and Las Vegas. The bonds form part of the $5.5 billion in tax-exempt private activity bond volume cap allocations granted by the US Department of Transportation ($OT) for the project.
Orrick served as bond counsel to the California Infrastructure and Economic Development Bank and as the Director of the State of Nevada’s 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, an affiliate of Brightline Holdings LLC.
Brightline Holdings has played a key role in the development of intercity passenger rail services since 2012, including Brightline Florida, which operates a 145.63 miles rail service between Miami and Orlando. The Brightline West rail system will span 217.99 miles between Rancho Cucamonga, California, and Las Vegas, Nevada. The fully electric trains that will be deployed will be designed to reach speeds of up to 186 mph, reducing travel time between the two cities to approximately two hours.
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.