Brightline West Secures $2.5 Billion for High-Speed Rail Project
Deal News | Mar 20, 2025 | Orrick
Orrick has served as bond counsel for the California Infrastructure and Economic Development Bank and Nevada's Department of Business and Industry in the closure of a $2.5 billion senior subordinated bond issue. The bonds are set to finance the Brightline West high-speed rail project, operated by DesertXpress Enterprises LLC, linking Southern California with Las Vegas. This financing forms part of a broader $5.5 billion tax-exempt private activity bond allocation granted by the U.S. Department of Transportation for the project. Brightline West, a subsidiary of Brightline Holdings LLC, is primarily owned by funds managed by Fortress Investment Group LLC. The project promises to revitalize travel between the regions with fully electric trains capable of 186 mph, significantly reducing travel time to roughly two hours over a 218-mile span. Ultimately, the venture is designed to boost economic competitiveness, foster substantial job creation, and support climate goals by linking Los Angeles—the second largest U.S. metropolitan area—with Las Vegas, a globally renowned travel destination.
Sectors
- Transportation
- Infrastructure
- Finance
Geography
- United States – The project takes place in the U.S., specifically between California and Nevada.
- California – One of the states directly benefiting from the rail line, as it connects to Southern California.
- Nevada – The rail project connects to Las Vegas, highlighting Nevada's role in the project.
Industry
- Transportation – The article discusses the financing and development of a high-speed rail line, highlighting innovation in the transportation sector.
- Infrastructure – The project involves significant infrastructure development, indicating its relevance to the infrastructure industry.
- Finance – The closure of a major bond financing deal connects the article to the finance sector.
Financials
- 2.5 billion – The amount of senior subordinated bonds issued for the project financing.
- 5.5 billion – The total tax-exempt private activity bond volume cap allocations from the U.S. Department of Transportation for the project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Orrick | Legal Advisor | Company | Served as bond counsel in the financing of the project. |
| California Infrastructure and Economic Development Bank | Issuer | Government | Participated in issuing the bonds for the project. |
| State of Nevada Department of Business and Industry | Issuer | Government | Participated alongside California in the issuance of the bonds. |
| Brightline West | Target Company | Company | The company developing the high-speed rail line. |
| Brightline Holdings LLC | Parent Company | Company | Owns Brightline West and operates the rail service. |
| Fortress Investment Group LLC | Investor | Company | Primarily owns and manages funds for Brightline Holdings LLC. |
| United States Department of Transportation | Regulator | Government | Provided tax-exempt private activity bond allocations for the project. |