Assured Guaranty says Brightline Florida Chapter 11 filings do not affect insured OpCo bond payments
AGO•Assured Guaranty said Brightline Trains Florida, the insured-bond obligor, did not file for Chapter 11 and payments on its insured tax-exempt senior bonds remain unchanged. A restructuring support agreement targets $490 million in new capital, including $140 million of senior debt; Assured Guaranty committed $70 million and may provide up to $178 million of post-petition funding.
1. Bond payments unchanged
Assured Guaranty said certain Brightline Florida affiliates filed for Chapter 11, but Brightline Trains Florida, the obligor on the insured bonds, did not. Payment obligations on AG-insured tax-exempt senior bonds remain unchanged. The restructuring support agreement targets $490 million of new capital for OpCo after it exits bankruptcy, including $140 million of pari passu senior debt; Assured Guaranty committed $70 million of that debt and agreed to provide up to $178 million of $258 million in post-petition funding. OpCo offered senior bondholders an interest deferral option, and Assured Guaranty will guarantee timely interest under the deferral for insured bonds.
