Virgin Trains USA, formerly known as Brightline, has shelved a previously announced plan for an initial public offering (IPO).
"As we explored a public offering, a number of alternative financing sources became available that allowed us to keep the company private and meet our growth strategies," the company said in a statement reported yesterday by the Miami Herald.
Late last month, Virgin Trains announced plans for the IPO of 28.3 million shares of common stock. The company also planned to grant the underwriters a 30-day option to purchase up to an additional 4.25 million shares at the IPO price, less underwriting discounts and commissions. At the time of the announcement, the expected IPO price was $17 to $19 per share.
Brightline launched service a year ago between Miami, Fort Lauderdale and West Palm Beach. The company plans to expand passenger-rail service to Orlando and Tampa. The railroad is transitioning to Virgin Trains USA branding this year.