Herbert Smith Freehills Kramer advises ad hoc group of holders in exchange offer of $2.5b Brightline West senior subordinated secured revenue bonds

On behalf of an ad hoc group of bondholders, HSF Kramer negotiated the terms of a private exchange and follow-on public exchange of $2.5 billion of Series 2025A Bonds issued by Nevada and California conduit issuers in respect of DesertXpress Enterprises LLC (DXE), which, along with certain affiliates, is developing a privately-owned and operated 218-mile electric passenger rail system, Brightline West, connecting Southern California and Las Vegas, Nevada. The bond exchange was done in connection with a mandatory tender deadline for the bonds while the company pursues federal funding and additional investment in the project.

The HSF Kramer team advising the bondholders was led by Amy Caton (Managing Partner, Finance and Restructuring, US), Scott Welkis (Partner, Head of Special Situations, US) and Robert (Bodie) Stewart (Partner, Special Situations, Finance/Capital Markets) and Bankruptcy and Restructuring associate Benjamin S. Sieck, and included Bankruptcy and Restructuring counsel Douglas Buckley, of counsel Steven Segal, and associates Ayla Lima and Ashland J. Bernard; Corporate partner Colin Bumby, special counsel Jeffery H Taub,  and associates Yashvi  Ganeriwala and Ovo Efemini; Tax partner Abraham (Avi) Reshtick and  associate Adam Sloate; Finance associates Christopher Henry and Andrew Litman, and law clerk Irania C. Marin; and Real estate associate Jacqueline Ryu.