New Issue: Kansas City Southern de Mexico $165 million seven-year notes yield 7 3/8%

By Paul A. Harris

St. Louis, May 14 - Kansas City Southern de Mexico, SA de CV priced a $165 million issue of seven-year senior notes (B2/B-) at par to yield 7 3/8% in a quick-to-market transaction on Monday, according to an informed source.

The yield was printed at the tight end of the 7 3/8% to 7½% price talk.

Banc of America Securities LLC was the left bookrunner for the Rule 144A with registration rights and Regulation S issue. Morgan Stanley was the joint bookrunner. The co-managers were BBVA, BMO Capital Markets and Scotia Capital.

Proceeds will be used to redeem the company's 12½% senior notes due 2012.

The issuer is a wholly owned subsidiary of railroad transportation company Kansas City Southern.

Issuer:	Kansas City Southern de Mexico, SA de CV
Amount:	$165 million
Maturity:	June 1, 2014
Security description:	Senior notes
Left bookrunner:	Banc of America Securities LLC
Joint bookrunner:	Morgan Stanley
Co-managers:	BBVA, BMO Capital Markets, Scotia Capital
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	274 bps
Call features:	Callable on June 1, 2011 at 103.688, 101.844, par on and after June 1, 2013
Equity clawback:	Until June 1, 2010 for 35% at 107.375
Trade date:	May 14
Settlement date:	May 16
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	7 3/8% to 7½%

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