Private Activity Bonds

VIRGIN TRAINS USA SIDETRACKS PLANNED $538 MILLION IPO

As background, Indian River County has appealed Federal Judge Cooper’s decision in favor of Brightline at a cost of $400,000 to IRC. One of their claims is that the PABs are designed as highway bonds and not rail bonds. If the Judge’s decision is overturned and the $1.7B Private Activity Bonds (PAB) have been sold, these bonds will be recalled.  

If they have not been purchased, bondholders will have to factor in the possibility that these bonds may be recalled at a future date.

TRUMP ADMINISTRATION SHOULD REJECT $3.7 BILLION LOAN TO JAPANESE-OWNED COMPANY FOR FLORIDA HIGHER-SPEED RAIL PROJECT OPERATING ON MEXICAN COMPANY-OWNED LINE

THE DEPARTMENT OF TRANSPORTATION MAY APPROVE A $3.7 BILLION RAILROAD REHABILITATION & IMPROVEMENT FINANCING (RRIF) LOAN TO VIRGIN TRAINS, owned by SoftBank Group based in Tokyo, to build a high-speed passenger train project on a freight rail line owned by Grupo Mexico.

SoftBank Group and Grupo Mexico could easily afford to issue their own bonds to cover these costs.

BRIGHTLINE GOES VIRGINAL. WHAT PRICE VIRGINITY?

NEW DEVELOPMENTS ARE BEING MADE AFTER BRIGHTLINE BEING PURCHASED BY VIRGIN LAST MONTH, reports David Peter Alan of the Railway Age. These developments include an IPO for stock and a possible additional station near Disney World.

TRAIN WRECK TIMES | HOLIDAY EDITION

The Train Wreck Times by Susan Mehiel - Holiday Edition

WE HAVE MUCH TO CELEBRATE THIS HOLIDAY SEASON! Despite all of the so-called positive media they’ve drummed up and the votes by Martin County and CARE FL, AAF/Virgin is no closer to starting construction on the second phase of the project than they were when the year started…think about that for a minute.

CONGRESSMEN TAKE AIM AT BRIGHTLINE BONDS

REPUBLICAN CONGRESSMEN MAST AND POSEY POINT TO AN OCT. 31 REPORT as they press the Department of Transportation to stop the extension Brightline has requested to issue tax-exempt bonds. These bonds are needed to expand Brightline's second phase from South Florida to Orlando.

The report is from the state Legislature's Office of Program Policy Analysis and Government Accountability, which supported financial and safety concerns about Brightline's service, as well as stating that the DOT hasn't used its authority to regulate the high-passenger rail's expected speeds.

BREAKING NEWS: BRIGHTLINE WANTS MORE TIME TO ISSUE NEXT BOND DEAL

BREAKING NEWS: OWNERS OF THE BRIGHTLINE HIGH-SPEED PASSENGER TRAIN HAVE REQUESTED MORE TIME TO ISSUE $1.15 BILLION OF BONDS, a federal agency said Wednesday. They currently have until Dec. 31 to issue said bonds to finance their second phase from West Palm Beach to Orlando.

The committee that reviews PAB allocations will consider Brightline's request next week, stated USDOT's Director of Public Affairs Marianne McInerney.

TRAIN WRECK TIMES - CELEBRATE GREAT NEWS

WE ARE CELEBRATING GREAT NEWS. Our Call to Action sent out Nov. 18 to attend a special meeting of the IRC commissioners on Nov. 20th turned out to be critical. At 7:45 p.m. the night before the meeting, we received notice that the meeting would focus on a deal negotiated between Martin and Indian River Counties and CARE with the representatives of AAF/Virgin. The attorneys for the respective counties circulated the deal to their commissioners.

HERE WE GO AGAIN | BRIGHTLINE GETS APPROVAL FOR $1.15 BILLION IN TAX-FREE BONDS FOR EXPANSION TO ORLANDO

BRIGHTLINE GOT THE OK TO BORROW $1.5 BILLION THROUGH TAX-FREE BONDS, despite the objections of numerous Treasure Coast officials who attended the meeting.

This is the second time the state board approved bonds. The first was back in August 2015 when the agency approved of $1.75 billion of bonds, but Brightline canceled the request and instead sought for separate approvals for $600 million and the $1.15 billion approved yesterday.

TRAIN WRECK TIMES - NEWS FLASH!

TRAIN WRECK TIMES by Susan Mehiel

NEWS FLASH!

Well, this just couldn’t wait.  We had a major victory in our efforts to Stop The Trains! this week with the release of the attached letter to Transportation Secretary Choa.  We could not have asked for a better outcome from our work in Washington and the subcommittee hearing last month.  In case you haven’t seen it, here’s the letter sent to the Secretary from Congressman Meadows and signed by Congressmen Mast, Posey, DeSantis and Gaetz.