Kansas City Southern buys back $176.65 million 7½% notes in tender offer

By Angela McDaniels

Tacoma, Wash., Feb. 12 - Kansas City Southern said $176.65 million principal amount of notes were tendered and accepted in the tender offer for Kansas City Southern Railway Co.'s $200 million 7½% senior notes due 2009.

The offer and a concurrent consent solicitation began on Jan. 14 and ended on Feb. 11. The consent deadline was Jan. 28.

The payout for each $1,000 principal amount of notes is $1,025.21, which includes a $20.00 consent payment for notes tendered by the consent deadline.

The payout was determined using the bid-side price on the 4% Treasury due June 15, 2009 as of 2 p.m. ET on Jan. 28 plus 50 basis points, minus accrued interest. The reference yield and the tender offer yield are 0.3% and 0.8%, respectively.

Kansas City Southern will also pay accrued interest up to but excluding the settlement date, which was Jan. 29 for notes tendered by the consent deadline and Feb. 12 for the remaining notes.

The company needed consents from holders of a majority of the notes. A supplemental indenture amending the notes has been executed.

Banc of America Securities LLC (888 292-0070 or 704 388-9217) was the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 659-5550 or call collect 212 269-5550) was the information agent.

Kansas City Southern provides rail transportation services and is based in Kansas City, Mo.

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