By Christine Van Dusen
Atlanta, May 6 - Kansas City Southern de Mexico SA de CV sold $220 million notes due June 15, 2021 (Ba3/BB-/) at par on Friday to yield 6 1/8%, or Treasuries plus 298 basis points, a market source said.
The notes priced at the tight end of talk, which was set at 6 1/8% to 6¼%.
Bank of America Merrill Lynch and JPMorgan were the bookrunners for the Rule 144A and Regulation S transaction.
The notes are non-callable for five years and include a make-whole call at Treasuries plus 50 bps.
Proceeds will be used to tender the company's 7 5/8% senior notes due 2013 and 7 3/8% senior notes due 2014.
Mexico City-based Kansas City Southern de Mexico provides rail freight transportation services in the Mexican railroad system.
| Issuer: | Kansas City Southern de Mexico SA de CV
|
| Amount: | $220 million
|
| Maturity: | June 15, 2021
|
| Description: | Notes
|
| Bookrunners: | Bank of America Merrill Lynch, JPMorgan
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Spread: | Treasuries plus 298 bps
|
| Call features: | Non-callable for five years; make-whole call at Treasuries plus 50 bps
|
| Trade date: | May 6
|
| Settlement date: | May 20
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6 1/8% to 6¼%
|
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