New Issue: Kansas City Southern de Mexico sells $185 million 6 5/8% 10-year notes at par

By Paul A. Harris

St. Louis, Dec. 14 - Kansas City Southern de Mexico, SA de CV priced a $185 million issue of 10-year senior notes (B1/BB-/) at par to yield 6 5/8% on Tuesday, according to an informed source.

The yield printed at the tight end of the 6 5/8% to 6¾% price talk.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market issue.

The railroad, which is based in Kansas City, Mo., will use the proceeds, together with cash on hand, to tender for its 7 5/8% senior notes due 2013 and its 12½% notes due 2016.

Issuer:	Kansas City Southern de Mexico, SA de CV
Amount:	$185 million
Maturity:	Dec.15, 2020
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC
Joint lead manager:	Scotia Capital
Co-managers:	BBVA Securities, Citigroup, UBS Investment Bank
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	323 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2015, then callable at 103.313, 102.208, 101.104, par on and after Dec. 15, 2018
Equity clawback:	35% at 106.625 until Dec. 15, 2013
Trade date:	Dec. 14
Settlement date:	Dec. 20
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights
Price talk:	6 5/8% to 6¾%
Marketing:	Quick to market

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