By Paul A. Harris
St. Louis, Jan. 7 - Kansas City Southern de Mexico, SA de CV priced an upsized $300 million issue of 8% eight-year senior notes (B2/B+/) at 98.55 to yield 8¼% on Thursday, according to an informed source.
The yield printed at the tight end of the 8 3/8% area price talk.
Bank of America Merrill Lynch, JPMorgan and Scotia Capital were joint bookrunners for the quick-to-market deal, which was upsized from $250 million. BBVA and BMO Nesbitt Burns were co-managers.
Proceeds will be used to redeem a portion of the company's 9 3/8% senior notes due 2012.
The issuer, a subsidiary of Kansas City Southern Railway Co., provides rail freight transportation services over the primary commercial corridor of the Mexican railroad system.
| Issuer: | Kansas City Southern de Mexico, SA de CV
|
| Face amount: | $300 million, increased from $250 million
|
| Proceeds: | $295.65 million
|
| Maturity: | Feb. 1, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, JPMorgan, Scotia Capital
|
| Co-managers: | BBVA, BMO Nesbitt Burns
|
| Coupon: | 8%
|
| Price: | 98.55
|
| Yield: | 8¼%
|
| Spread: | 467 bps
|
| Call protection: | Three years
|
| Equity clawback: | 35% at 108.0 until Feb. 1, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 22
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 8 3/8% area
|
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