California Backs Big Bond Deal for Virgin Trains' Las Vegas Line
Photographer: Jason Alden/Bloomberg
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A California agency on Wednesday approved the first step in the plans of Virgin Trains USA to sell $4.2 billion in tax-exempt debt to build a high-speed train to Las Vegas from a desert town in southern California.
The state’s Debt Limit Allocation Committee staff recommended that the company, backed by Fortress Investment Group’s private equity funds, receive half of its request for now, contingent on it submitting an economic development plan. Combined with an expected allocation from the federal government, a California agency would issue up to $3.2 billion of tax-exempt debt on the train’s behalf.