All Aboard Florida received approval to issue tax-free bonds with a value of USD 1.75 billion. The new bonds will be unrated. The debt sale must be completed by the end of the year to retain tax-exempt status.
A part of the proceeds will be used to pay off USD 405 million worth of bonds issues last year that sold at a 12 percent interest rate, which were used to begin work on stations and tracks in the Miami area.
The total cost of All Aboard Florida’s rail project is estimated at USD 2.5 billion, with the company investing USD 700 million in equity.
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