TFM $170 million 10-year notes talked at 12¾%-13%

By Paul A. Harris

St. Louis, Mo., June 4 - Price talk of 12¾%-13% emerged Tuesday on Transportacion Ferroviaria Mexicana SA de CV's planned offering of $170 million 10-year senior notes (B1/BB-), according to a syndicate source. The source added that the deal will likely price late Wednesday or early Thursday.

Salomon Smith Barney is the bookrunner for the Rule 144A offering.

The notes are non-callable for five years. If the company is not able to raise at least $150 million via this offering of 10-year senior notes the previously obtained consents will be revoked.

Proceeds will be used to finance acquisition of Mexican government's 24.6% equity interest in the company.

The issuer is a Mexican railroad owned jointly by TMM and KC Southern and is headquartered in Mexico City.

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