DARRELL PRESTON/BLOOMBERG

Fortress Investment Group LLC’s plan to sell $1.75 billion of municipal debt to build the first privately run passenger railroad in a century is drawing opposition from some Florida residents. Bond buyers may pose a bigger obstacle.

Debt of All Aboard Florida, the company owned by Fortress private-equity funds that’s building the project, has lost more than 7 percent of its market value since it was issued in June. And the company has been paying interest in kind, racking up more debt, according to data compiled by Bloomberg. Continue reading…

Fortress’s Florida passenger rail line faces skeptical investors

DARRELL PRESTON/BLOOMBERG

Fortress Investment Group sold Florida officials on its plan to build the first new privately run U.S. passenger railroad in more than a century, saying it will get 3 million cars off the road, create 10,000 jobs and provide a $6 billion jolt to the economy.

The New York private-equity and hedge-fund company now has to persuade another crucial audience: Bond investors who question whether Sunshine State travelers will leave their cars behind to ride on the 235-mile (378 kilometer) route from Orlando to Miami. Continue reading…