Financing Complete, All Aboard Florida To Begin Construction Immediately

Now that All Aboard Florida has successfully completed a $405 million bond sale, construction will begin immediately on the Miami-West Palm Beach line, according to a prospectus sent to institutional investors in the project obtained by the Palm Beach Post.

Construction cost for the first phase of the Miami station is estimated at $150 million, while the Fort Lauderdale and West Palm Beach stations will cost about $30 million each. An additional $95 million will be spent on tracks and bridges and $105 million will go to upgrade crossings and signals. Total costs for the Miami-West Palm Beach line will reach $795 million, excluding an additional $44 million to connect the line to commuter rail, which could be financed by a government grant.

A ticket from Miami to West Palm Beach will cost $30 in coach and $36.60 in business class.

The West Palm Beach to Orlando line is expected to cost $1.4 billion and will be financed separately.

Reuters reported that the bond market was ‘wowed’ by the deal. Investors in the 12% notes were granted a lien on the valuable downtown Miami land, among other covenants that make the bonds look like an ‘equity story’. Bond investors could be bought out early if the federal government grants a $1.5 billion loan to AAF.

The company also released a video that demonstrates what a typical gate crossing will look like (see below).

 

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