By Paulo Trevisani


California and Nevada are planning to offer $500 million of municipal revenue bonds to develop a 218-mile passenger rail system connecting Los Angeles and Las Vegas.

The California Infrastructure and Economic Development Bank and Director of the State of Nevada Department of Business and Industry are remarketing $350 million of the California Series 2020A-4 bonds, and $150 million of the Nevada Series 2020A-4 bonds, according to a preliminary offering statement posted Wednesday on MuniOS.

Pricing information on tax-exempt debt wasn't immediately available.

Proceeds will be used to develop Brightline West, a privately owned and operated high-speed rail line, which will let people travel between Southern California and Las Vegas in under two hours. Brightline is primarily owned by funds managed by an affiliate of Fortress.

The bonds will be payable through a trust estate, which includes the railroad's assets as collateral.

A credit rating for the bonds hasn't been applied for, according to the preliminary statement, and company isn't obligated to seek one in the future.

Morgan Stanley is lead manager on the deal.


Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

07-17-24 1558ET