Kansas City Southern gets needed consents for 7½% notes

By Susanna Moon

Chicago, Jan. 27 - Kansas City Southern said it received the required tenders and consents for its $200 million of 7½% senior notes due 2009 as of 5 p.m. ET on Tuesday.

The company sought consents from a majority of holders to amend the notes. Kansas City Southern announced Jan. 14 that its wholly owned subsidiary, Kansas Southern Railway Co., began a cash tender offer and consent solicitation for its 7½% notes.

The consent deadline is 5 p.m. ET on Jan. 28, and the tender will end at midnight ET on Feb. 11.

The company said it executed a supplemental indenture amending the notes.

For each $1,000 principal amount, the company previously said it will determine its payout using the bid-side price on the 4% Treasury due June 15, 2009 as of 2 p.m. ET on Jan. 28 plus 50 basis points, minus accrued interest. The total consideration will include a consent payment of $20.00 for those who tender by the early deadline.

Kansas City Southern will also pay accrued interest to the settlement date.

Banc of America Securities LLC is the dealer manager and solicitation agent (888 292-0070 or 704 388-9217). D.F. King & Co., Inc. is the information agent (800 659-5550 or call collect 212 269-5550).

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

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