TMM tender for up to $331 million notes due 2007 oversubscribed

By Jennifer Chiou

New York, Jan. 18 - Grupo TMM, SA said it accepted on a pro rata basis the $428,194,642 of senior secured notes due 2007 submitted in its cash tender offer to purchase up to $331,018,794 of the notes.

The offer expired at midnight ET on Jan. 13.

TMM said it will pay par plus accrued interest up to but excluding the settlement date.

The Mexico City-based transportation company started the tender on Dec. 15. After the offer, there is $156,958,040 of notes outstanding.

As a result of the tender offer and following the notes' indenture, the interest rate of the outstanding notes will be reduced by 1% beginning Feb. 1. TMM said if it elects to pay interest on the notes in cash, they will bear interest at 9½%.

As previously announced, the company will use the remaining proceeds from its 18 million-share sale of Kansas City Southern stock to fund the offer, in line with the requirements of the indenture.

The Bank of New York is the paying agent (212 815-5778).

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