Kansas City Southern de Mexico holders tender $174.51 million of 7 5/8% notes, 12½% notes

By Angela McDaniels

Tacoma, Wash., Dec. 20 - Kansas City Southern said that its wholly owned subsidiary, Kansas City Southern de Mexico, SA de CV, accepted $174,511,000 of notes for purchase in the tender offer for its $175 million of 7 5/8% senior notes due 2013 and $130 million of 12½% senior notes due 2016.

The company accepted $142,617,000 principal amount of 7 5/8% notes and $31,894,000 principal amount of 12½% notes.

The offer began on Nov. 2 and ended at midnight ET on Dec. 17, after being extended from Dec. 1.

Kansas City Southern de Mexico also solicited consents to proposed amendments that would eliminate or make less restrictive substantially all of the restrictive covenants and modify certain other provisions in the indenture governing the 7 5/8% notes. On Nov. 17, the company said it had received the necessary consents.

The purchase price was $1,040.63 for each $1,000 principal amount of 7 5/8% notes and $1,240.00 for each $1,000 of 12½% notes.

These prices included a consent payment of $30.00 for each 7 5/8% note tendered by 5 p.m. ET on Nov. 16 and an early tender premium of $30.00 for each 12½% note tendered by that time.

Kansas City Southern de Mexico also paid accrued interest up to but excluding the applicable settlement date, which was Nov. 22 for the notes tendered by the early deadline and Dec. 20 for the remaining notes.

As of the early deadline, holders had tendered $138,855,000 of the 7 5/8% notes and $31,594,000 of the 12½% notes.

Bank of America Merrill Lynch (888 292-0070 or 980 388-9217) was the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 859-8509 or 212 269-5550) was the information agent.

Based in Kansas City, Mo., Kansas City Southern is a transportation holding company that has railroad investments in the United States, Mexico and Panama.

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