Diameter, Redwood, FourSixThree acquire $190M in Brightline bonds from Nuveen

Nuveen: Nuveen is a global investment manager with capabilities across public and private markets. It recently divested its entire position in Brightline’s senior uninsured municipal bonds through a bids-wanted-in-competition process shortly after the railroad’s Chapter 11 filing. Redwood: Redwood Capital Management is a hedge fund that invests in illiquid and distressed credit, including municipal bonds in restructuring scenarios. It participated alongside Diameter and FourSixThree in acquiring Brightline senior uninsured bonds from Nuveen following the issuer’s recent bankruptcy filing. Diameter: Diameter Capital Partners is a distressed-debt hedge fund focused on opportunities in stressed and bankrupt credits. In the current news, it joined Redwood and FourSixThree in purchasing a substantial portion of Brightline’s municipal bonds from Nuveen amid the railroad’s Chapter 11 proceedings. Brightline: Brightline is a private passenger railroad operator serving routes in Florida. It recently filed for Chapter 11 bankruptcy protection, prompting the sale of its senior uninsured municipal bonds by existing holders including Nuveen. FourSixThree: FourSixThree Capital is a distressed-debt hedge fund that targets opportunities in stressed municipal and corporate credits. The firm joined Diameter and Redwood in purchasing Brightline’s municipal bonds from Nuveen in a competitive bidding process tied to the railroad’s Chapter 11 case. Bond Transaction: Nuveen offered its full Brightline senior uninsured municipal bond position for sale via a competitive BWIC process days after the Chapter 11 filing. Bankruptcy Development: Brightline filed for Chapter 11 bankruptcy in late September 2026, marking a significant event in the high-yield municipal bond market.