Tax Free Bonds: $1.75 Billion From All Aboard Florida's MiamiCentral Station
Aug 28, 2015 August 28, 2015
All Aboard Florida (AAF) has recently received approval for issuing $1.75 billion in tax-free bonds.
A Florida board gave the approval for the bonds, which is just in time for the completion of piling work at the MiamiCentral Station.
AAF will be able to pay off the $405 million worth of bonds that they issued in 2014, which sold at a 12% interest rate. The 2014 bonds were used to begin work on stations and tracks for railways in the Miami area.
The bonds for 2015 will not be rated, but will more than likely have lower interest rates than the 2014 bonds. This is due to the 2014 bonds being investor unfriendly, with lots of risks and several provisions. The beginning of marketing campaigns for the bonds will begin in September. However, they must be finished selling by the end of December in order to keep its tax-exempt status.
As far as the project itself, the contractors working on the MiamiCentral Station have successfully drilled 1,600 piles, with a depth of 100 feet each. Workers have begun construction on certain parts of the rail, which will stand about 50 feet above the street.
AAF is estimating $2.5 billion for the project, $700 million of which will be from equity.
Photo credit: thenextmiami.com