New Issue: Kansas City Southern sells $1.18 billion notes due 2020, 2023, 2043

By Christine Van Dusen

Atlanta, April 25 - Kansas City Southern de Mexico priced $725 million of seven- and 10-year notes (Baa3/BBB-/) while Kansas City Southern Railway Co. printed $450 million 30-year notes via BofA Merrill Lynch, JPMorgan and Morgan Stanley, a market source said.

The deal included $275 million 2.35% notes due 2020 that priced at 99.884 to yield 2.368%, or Treasuries plus 125 basis points. The second tranche totaled $450 million 3% notes due 2023 that priced at 99.587 to yield 3.048%, or Treasuries plus 135 bps.

The third tranche - $450 million 4.3% notes due 2043 - priced at 99.081 to yield 4.355%, or Treasuries plus 145 bps.

The issuer is a Mexico City-based freight transportation company.

Issuers:	Kansas City Southern de Mexico SA de CV and Kansas City Southern Railway Co.
Amount:	$1,175,000,000
Description:	Notes
Bookrunners:	BofA Merrill Lynch, JPMorgan, Morgan Stanley
Change-of-control put:	At 101%
Trade date:	April 25
Settlement date:	May 15
Ratings:	Moody's: Baa3
	Standard & Poor's: BBB-
Seven-year notes
Issuer:	Kansas City Southern de Mexico SA de CV
Amount:	$275 million
Maturity:	May 15, 2020
Coupon:	2.35%
Price:	99.884
Yield:	2.368%
Spread:	Treasuries plus 125 bps
10-year notes
Issuer:	Kansas City Southern de Mexico SA de CV
Amount:	$450 million
Maturity:	May 15, 2023
Coupon:	3%
Price:	99.587
Yield:	3.048%
Spread:	Treasuries plus 135 bps
30-year bonds
Issuer:	Kansas City Southern Railway Co.
Amount:	$450 million
Maturity:	May 15, 2043
Coupon:	4.3%
Price:	99.081
Yield:	4.355%
Spread:	Treasuries plus 145 bps

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