Brightline reshuffles leadership

Brightline Trains has named Eurostar veteran Nicolas Petrovic as CEO of Brightline Holdings LLC to oversee the struggling Florida passenger train, while former CEO Michael Reininger will focus solely on the company's West Coast bullet train project.

Petrovic will "focus on driving long-term value and sustained growth for Brightline's Florida operations," Brightline said.

Reininger will now be managing director and member of the board of Brightline West, where he will "oversee the development of America's first high speed passenger system." Reininger was Brightline Holding's CEO from 2012 to 2018 and again since 2021.

The company also appointed Mauricio Anderson as CFO of Brightline Holdings and its subsidiaries other than Brightline West. Anderson replaces Jeff Swiatek, who joined the company in 2018 and left in January. Anderson has worked for one of Brightline's indirect parent entities, Florida East Coast Industries, LLC since 2013 and as CFO since 2019.

Bruce Snyder will be elevated from deputy CFO of Brightline West to CFO of Brightline West.

Patrick Goddard, president of Brightline Trains, and Sarah Watterson, president of Brightline West, will remain in their leadership roles.

"We are excited about the future of Brightline, and these moves will align our executive leadership with the specific needs to support both of our businesses," said Wes Edens, founder of Brightline Holdings, in a statement. "As Brightline continues to pioneer a new era in American transportation, the insights that Nicolas bring from around the globe will strengthen our operating company as it continues to grow and expand, while Mike concentrates his focus once again on implementing an unprecedented infrastructure development."

Petrovic has more than 25 years of experience in leadership positions in Europe and the Middle East, Brightline said. He joined Eurostar, the high-speed line connecting London, Paris and Brussels, in 2003 and served as CEO from 2010 through 2018. "Under his leadership, Eurostar achieved record passenger numbers while navigating complex international regulatory environments and intensifying competition from low-cost airlines," Brightline said in the press release announcing the leadership changes.

"It is an honor to lead the company's next stage of growth," said Petrovic, who will be based in Miami. "With the tools and experiences from a global peer group, I believe Brightline will continue to show the way forward for profitability and customer experience that will firmly position the business in America's transportation landscape."

Reininger will now focus entirely on Brightline West. "His singular focus on Brightline West will be critical to executing the high-speed rail project, which represents one of the largest private infrastructure investments in U.S. history," the company said.

The leadership changes come at key times for both projects. The 235-mile Miami to Orlando Florida train has faced significant ridership and revenue struggles over the past year that in late December sparked a five-notch downgrade from S&P Global Ratings. Deep drops in its bond prices last year dragged down the performance of some high-yield municipal bond funds.

The company has a debt service payment due on Jan. 15 on a chunk of $1.2 billion of unrated subordinate debt. Interest on last July's payment was deferred, a move that rattled the market. The company is allowed under its bond indenture to make three deferrals and, after pulling that lever in July, now has two remaining. A spokesperson declined to comment on the payment.

The future of the Las Vegas to southern California bullet train hinges on a $6 billion federal Railroad Rehabilitation & Improvement Financing loan the company applied for in October. The RRIF loan is a central part of a revamped financing package for the project, whose price tag jumped 31% last year to total $21 billion.