Kansas City Southern unit gets consents needed to amend 8% notes

By Angela McDaniels

Tacoma, Wash., Feb. 7 - Kansas City Southern subsidiary Kansas City Southern Railway Co. has received enough consents to amend its $275 million of 8% senior notes due 2015, according to a company news release.

A tender offer and consent solicitation for the notes began on Jan. 25.

As of the consent deadline, 5 p.m. ET on Feb. 7, holders had delivered tenders and consents for $174,596,000 of the notes, enough to execute a supplemental indenture that will eliminate substantially all of the restrictive covenants in the note indenture.

The company will pay $1,059.96 for each $1,000 principal amount of notes plus accrued interest up to but excluding the settlement date. This includes a consent premium of $20.00 for each note tendered by the consent deadline.

The tender offer will expire at 5 p.m. ET on Feb. 23.

The offer is subject to a financing condition.

J.P. Morgan Securities LLC (800 245-8125 or 212 270-0761) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 848-2998 or 212 269-5550) is the information and tender agent.

Kansas City Southern is a Kansas City, Mo.-based freight rail transportation company.

© 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.