Isn't real estate an essential component?
oltmannd I suspect they need to get to Orlando before the cash really rolls in. (although how you pay off $4B in debt is a question of Trumpian proportions)
Maybe they don't really pay it off! The present value of the debt over 30 years at the U.S. Treasury long bond rate is $1.7 billion. So, if they just make the interest payments and periodically roll the debt, over 30 years the $4 billion becomes $1.7 billion in real dollar terms.
Also, as the system expands and ridership increases, the company probably will be able to increase its fares to at least keep pace with inflation, which depending on the other financial constraints could provide the monies to service the real debt or even pay it off.
Most corporations don't look to paying off their debt; they look to managing it. Most successful corporations never completely pay down their debt.
Debt is not the problem. The problem is carrying more debt than can be serviced.
Brightline is having ridership and revenue up 15% froom last March. Certainly appears pent up demand for service along the I-95 corridor ?
https://emma.msrb.org/ES1263283-ES988848-ES1390198.pdf
https://www.miamiherald.com/news/business/article229588229.html?fbclid=IwAR0P8vTgBwEPEgeGqIhuKUaFR4t1MR0PsRilTpzNncPz1DQQEd2hU8oA1Ng
Good news. Still a drop in the bucket, but I suspect they need to get to Orlando before the cash really rolls in. (although how you pay off $4B in debt is a question of Trumpian proportions)
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
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