U.S., Florida, Nevada, California: Fortress Debt Sale for Vegas Train Sees Bond Market Skeptics

By Romy Varghese, Bloomberg, Yahoo! Finance; August 13, 2020

(Bloomberg) — During the municipal-debt market’s pre-pandemic boom days, investors poured almost $2 billion into America’s first new privately financed intercity passenger rail in a century, allowing Fortress Investment Group to expand its unprofitable line to Orlando.

Now Fortress is back, seeking $4.2 billion more to build a new railroad to Las Vegas from a desert town near Victorville, California, about 90 miles (145 kilometers) outside Los Angeles. But even the investor who bought about 80% of the previous deal said the company should focus on improving its inaugural train before trying to market the largest ever offering of unrated muni bonds as Covid-19 sidelines travelers.

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