Kansas City Southern de Mexico tenders for 7 5/8% notes, 7 3/8% notes

By Angela McDaniels

Tacoma, Wash., May 6 - Kansas City Southern de Mexico, SA de CV began tender offers for its $32.4 million of 7 5/8% senior notes due 2013 and its $165 million of 7 3/8% senior notes due 2014, according to a company news release.

The company is soliciting consents to amend both note indentures to shorten the minimum notice period for a redemption. It is also soliciting consents to eliminate substantially all of the restrictive covenants in the indenture governing the 7 3/8% notes.

The consent solicitations will expire at 5 p.m. ET on May 19, and the tender offers will expire at 8 a.m. ET on June 6.

The payment will be $1,040 for each $1,000 principal amount of notes. This includes a consent payment of $10.00 for each note tendered by the consent deadline. Holders will also receive accrued interest.

For notes tendered by the consent deadline, settlement is expected to occur promptly after the financing condition is satisfied.

The dealer manager and solicitation agent is Bank of America Merrill Lynch (888 292-0070 or 980 388-9217). The information and tender agent is D.F. King & Co., Inc. (800 829-6551 or 212 269-5550).

The company is a subsidiary of Kansas City, Mo.-based Kansas City Southern, a transportation holding company that has railroad investments in the United States, Mexico and Panama.

© 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.