By Paul A. Harris
St. Louis, Dec. 16 - Kansas City Southern Railway Co. priced a $190 million issue of 13% five-year senior unsecured notes (B2/BB-/) at 88.405 to yield 16½% on Monday, according to an informed source.
The deal was oversubscribed, according to Ginger Adamiak, general director of investor relations for Kansas City Southern.
Although the face amount of the issue was upsized from $175 million, the amount of proceeds, approximately $164.17 million, was in line with the $150 million to $175 million range that the company intended to raise, Adamiak added.
The yield came at the tight end of the 16½% to 16¾% yield talk, while the coupon came on top of talk.
Morgan Stanley & Co. Inc. was left bookrunner for the notes, which are registered with the Securities and Exchange Commission. Banc of America Securities LLC was the joint bookrunner.
Proceeds along with other borrowings will be used to repay the company's 7½% senior notes due 2009.
The issuer is a Kansas City, Mo.-based rail freight company.
| Issuer: | Kansas City Southern Railway Co.
|
| Face amount: | $190 million
|
| Proceeds: | $164.17 million (approximate)
|
| Maturity: | Dec. 15, 2013
|
| Security description: | Senior unsecured notes
|
| Left bookrunner: | Morgan Stanley & Co. Inc.
|
| Joint bookrunner: | Banc of America Securities LLC
|
| Joint lead manager: | Scotia Capital
|
| Co-managers: | BMO Capital Markets and SunTrust Securities
|
| Coupon: | 13%
|
| Price: | 88.405
|
| Yield: | 16½%
|
| Spread: | 1,501 bps
|
| Call features: | Callable on Dec. 15, 2011 at 113.00, Dec. 15, 2012 at 106.50
|
| Equity clawback: | Until Dec. 15, 2010 for 35% at 113.00
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 18
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 13% coupon with an original discount to yield of between 16½% and 16¾%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
