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Story Highlights

• Brightline narrowed its net loss to $54 million in the first quarter.
• The Miami-based rail operator carries $4.9 billion in debt from infrastructure costs.
• Brightline seeks equity issuance or debt restructuring to secure future operations.

The operator of the Brightline passenger rail narrowed its losses in the first quarter, but it remains in search of capital or a debt restructuring to secure its future, according to a new report to bond investors.

The Miami-based company reported a net loss of $54 million, improved from a net loss of $60.1 million in the same quarter a year ago. Its revenue increased 12% to $61.2 million as it carried just over 900,000 passengers, registering 13.5% growth. However, its average fare per passenger declined slightly to $55.90, mostly because Brightline re-introduced a discount for repeat riders in South Florida in order to boost short-distance trips.

The biggest challenge on Brightline’s financial books is debt. It had $4.9 billion in debt as of March 31, largely coming from the cost of building its passenger rail infrastructure. Brightline has asked for several extensions on making debt payments this year, most recently agreeing with lenders on June 15 to extend a grace period on bond payments from June 14 to June 30. Also on June 17, Brightline took out a $43.1 million loan at an issue price of 70% in order to redeem a $22.2 million loan issued on May 21.

Of Brightline’s $54 million third quarter loss, $30.3 million came from interest payments on debt. Those interest payments have increased year-over-year, while the operating losses from its trains have narrowed.

In its financial statement, Brightline said it needs additional cash liquidity to meet its operating requirements and debt service payments.

“Brightline continues to actively pursue the planned issuance of a substantial amount of equity, the proceeds of which would be used to repay principal and interest of existing higher-coupon indirect parent entities’ debt of ours and to increase cash reserves,” the company stated. “We have also been in discussions with creditors for the potential incurrence of additional debt, debt amendments, refinancing transactions, and other strategic transactions to extend maturities and optimize value while providing additional liquidity and cash flow.

I have a schedule trip that leaves tomorrow and just realize my ID is expired. Do you they check IDs?

Hi, I’m taking the bright line from Boca to Miami. Going with a child. Is the frost museum a reasonable walk from the brightline station? Also any general advice whether brightline or museum related?