Bondholders granted Brightline, which runs a 235-mile private railroad between Miami and Orlando, a roughly two-month "grace period" on an interest payment due on its commuter bonds on Feb. 17.
The Fortress Investment Group-backed railroad will be penalized with a 2% step-up in the interest during that time, according to a filing on Tuesday. The grace period for the interest payment was extended to April 15.
"The borrower did not make the interest payment due on February 17, 2026, and, accordingly, such grace period has commenced," the filing said.
The $985 million of debt is backed by future commuter rail-access rights payable to Brightline by three South Florida counties. The counties, namely Miami-Dade, Broward and Palm Beach, are planning an 85-mile commuter rail line that would run on a shared corridor with Brightline. But the project has been delayed while Brightline and the counties negotiate agreements for access rights.
A spokesperson for Brightline declined to comment.
Brightline has been facing mounting financial woes as ridership and revenue fall far short of projections. In January, the rail company skipped its second interest payment on $1.2 billion of subordinate municipal bonds.
