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Kansas City Southern de Mexico gets tenders of $423 million 9 3/8% notes in offer for $290 million
By Susanna Moon
Chicago, Jan. 22 - Kansas City Southern de Mexico, SA de CV holders tendered $423 million principal amount of its 9 3/8% senior notes due 2012 as of 5 p.m. ET on Jan. 21, the early tender date for an offer to buy up to $290 million of the notes.
Because the tender cap has been reached, the company will not accept any additional notes from holders in the remaining days of the offer, according to a news release from parent company Kansas City Southern.
The tender offer is set to expire at midnight ET on Feb. 4.
Kansas City Southern said on Jan. 7, just several hours after the offer began, that it raised the tender cap to $290 million principal amount from $240 million.
The company previously said that notes will be purchased on a pro rata basis and that those tendered prior to the early tender time will be given priority and may be settled prior to the expiration date.
The company will pay $1,041.25 for each $1,000 principal amount of notes accepted for purchase. This amount includes an early tender premium of $30.00 for each note tendered by the early tender time.
Holders will also receive accrued interest up to but excluding the settlement date.
The company will fund the tender offer with cash on hand and the proceeds of an offering of senior notes due 2018.
The closing of the tender offer will be conditioned, among other things, on the company's completion of the new notes offering on terms it finds acceptable.
Banc of America Securities LLC (888 292-0070 or 908 388-9217) is the dealer manager. D.F. King & Co., Inc. (800 659-5550 or 212 269-5550) is the information agent.
Kansas City Southern is a railroad company based in Kansas City, Mo. Kansas City Southern de Mexico operates in northeastern and central Mexico.
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