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Assured Guaranty commits up to $248 million to Brightline Florida deal

The financing is linked to a restructuring support agreement that targets $490 million in new capital for OpCo after other entities leave bankruptcy.

Reported · Written up by our desk · Industry & Deals

Assured Guaranty said it has committed up to $248 million in financing tied to Brightline Florida’s restructuring, while stating that Brightline Trains Florida LLC, or OpCo, has not filed for Chapter 11. Coverager reported that Assured Guaranty said the bankruptcy filings involving other Brightline Florida entities do not change OpCo’s payment obligations on its insured senior bonds.

Under a restructuring support agreement that requires bankruptcy court approval, stakeholders plan to provide OpCo with $490 million in new capital after the other entities exit bankruptcy, Coverager said. Assured Guaranty said it has committed $70 million toward the senior debt portion.

Assured Guaranty also agreed to provide up to $178 million of the $258 million in funding available to OpCo during the bankruptcy process, with that funding intended to be repaid upon exit. Coverager added that Assured Guaranty insures slightly more than half of OpCo’s existing senior tax-exempt bonds and holds the majority debt voting position.

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