Kansas City Southern unit calls all $100.3 million 8% notes due 2015

By Jennifer Chiou

New York, May 1 - Kansas City Southern subsidiary Kansas City Southern Railway Co. announced that it has called its remaining $100.3 million of 8% senior notes due 2015.

The notes will be redeemed at 104 on June 1.

The redemption will be funded using $100 million of the proceeds from the company's $275 million term loan A-2.

As already reported, a successful tender offer and consent solicitation for the notes began on Jan. 25 and ended on Feb. 23. At the consent deadline of 5 p.m. ET on Feb. 7, holders had delivered tenders and consents for $174,596,000 of the notes, enough to eliminate substantially all of the restrictive covenants in the note indenture.

In the tender, the company paid $1,059.96 for each $1,000 principal amount of notes plus accrued interest up to but excluding the settlement date, including a consent premium of $20.00 for each note tendered by the consent deadline.

Kansas City Southern is a Kansas City, Mo.-based freight rail transportation company.

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