Kansas City Southern expected to offer bonds next week to fund $275 million tender offer

By Paul A. Harris

Portland, Ore., Jan. 26 - Railroad operator Kansas City Southern plans to bring high-yield bonds in conjunction with a $275 million tender offer for its 8% notes due in 2015, according to market sources.

The deal could hit the market as early as the week ahead, according to a high-yield mutual fund manager.

Although J.P. Morgan Securities LLC is the dealer manager for the tender, Bank of America Merrill Lynch is expected to lead the bond deal, the manager added.

The due date for early consents in the railroad operator's tender offer is Feb. 7. The tender expires on Feb. 23.

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