Kansas City Southern de Mexico seeks tenders, consents for 10¼% notes

By Laura Lutz

Des Moines, Oct. 23 - Kansas City Southern de Mexico SA de CV, a wholly owned subsidiary of Kansas City Southern, announced a tender offer and consent solicitation for all of its $150 million outstanding principal amount of 10¼% senior notes due 2007.

The consent solicitation deadline is 5 p.m. ET on Nov. 3, and the tender offer expires at midnight ET on Nov. 20.

For each $1,000 of notes tendered before the consent deadline, the company will pay the present value to maturity of the notes on the settlement date, based on a reference yield plus 50 basis points, excluding accrued interest to the settlement date. The reference security will be the 3.5% U.S. Treasury due May 31, 2007, calculated as of 2 p.m. ET on Nov. 3, or on the tenth business day preceding the expiration date of the tender offer.

Notes tendered after the consent deadline will receive the same amount, less a $30 per $1,000 principal amount consent payment.

The company will also pay accrued interest to the settlement date for the notes.

Morgan Stanley & Co. Inc. (800 624-1808 or collect 212 761-1941) will act as dealer manager and solicitation agent for the offer. D.F. King & Co., Inc. (800 488-8075 or collect 212-269-5550) will act as information and tender agent.

Kansas City Southern is a Kansas City, Mo.-based railroad company. Kansas City Southern de Mexico operates in northeastern and central Mexico.

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