Kansas City Southern to fund redemption of 10¼% notes with loan proceeds

By Susanna Moon

Chicago, June 19 - Kansas City Southern de Mexico, SA de CV said it plans to fund the redemption of its 10¼% senior notes due 2007 with the proceeds of a two-tranche $111 million financing.

Proceeds also will pay an existing credit agreement from October 2005 and a bridge loan agreement from April 2007, and will help refinance 12½% senior notes due 2012.

The credit agreement is between Kansas City Southern as borrower and its subsidiary Arrendadora KCSM, SA de CV as guarantor.

Tranche A is a revolving loan facility of up to $81 million maturing Dec. 30, 2011. Tranche B is a term loan facility of up to $30 million maturing June 29, 2012.

Kansas City Southern de Mexico operates in northeastern and central Mexico.

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