Published on 4/25/2013 in the Prospect News Emerging Markets Daily and Prospect News High Yield Daily.
New Issue: Kansas City Southern sells $1.18 billion notes due 2020, 2023, 2043
By Christine Van Dusen
Atlanta, April 25 - Kansas City Southern de Mexico priced $725 million of seven- and 10-year notes (Baa3/BBB-/) while Kansas City Southern Railway Co. printed $450 million 30-year notes via BofA Merrill Lynch, JPMorgan and Morgan Stanley, a market source said.
The deal included $275 million 2.35% notes due 2020 that priced at 99.884 to yield 2.368%, or Treasuries plus 125 basis points. The second tranche totaled $450 million 3% notes due 2023 that priced at 99.587 to yield 3.048%, or Treasuries plus 135 bps.
The third tranche - $450 million 4.3% notes due 2043 - priced at 99.081 to yield 4.355%, or Treasuries plus 145 bps.
The issuer is a Mexico City-based freight transportation company.
Issuers: | Kansas City Southern de Mexico SA de CV and Kansas City Southern Railway Co.
|
Amount: | $1,175,000,000
|
Description: | Notes
|
Bookrunners: | BofA Merrill Lynch, JPMorgan, Morgan Stanley
|
Change-of-control put: | At 101%
|
Trade date: | April 25
|
Settlement date: | May 15
|
Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
Seven-year notes
|
Issuer: | Kansas City Southern de Mexico SA de CV
|
Amount: | $275 million
|
Maturity: | May 15, 2020
|
Coupon: | 2.35%
|
Price: | 99.884
|
Yield: | 2.368%
|
Spread: | Treasuries plus 125 bps
|
|
10-year notes
|
Issuer: | Kansas City Southern de Mexico SA de CV
|
Amount: | $450 million
|
Maturity: | May 15, 2023
|
Coupon: | 3%
|
Price: | 99.587
|
Yield: | 3.048%
|
Spread: | Treasuries plus 135 bps
|
|
30-year bonds
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Issuer: | Kansas City Southern Railway Co.
|
Amount: | $450 million
|
Maturity: | May 15, 2043
|
Coupon: | 4.3%
|
Price: | 99.081
|
Yield: | 4.355%
|
Spread: | Treasuries plus 145 bps
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