Kansas City Southern de Mexico sets pricing, gets tenders for 97% of 10¼% notes at early deadline

By Jennifer Chiou

New York, Nov. 6 - Kansas City Southern de Mexico SA de CV, a wholly owned subsidiary of Kansas City Southern, announced it obtained tenders from holders of $145.7 million or 97% of its $150 million of 10¼% senior notes due 2007 at the consent solicitation deadline of 5 p.m. ET on Nov. 3.

The tender offer expires at midnight ET on Nov. 20.

For each $1,000 of notes tendered before the consent deadline, the company will pay $1,025.39, which is the present value to maturity of the notes on the settlement date, based on a reference yield plus 50 basis points, excluding accrued interest to the settlement date. The reference security is the 3.5% U.S. Treasury due May 31, 2007, calculated as of 2 p.m. ET on Nov. 3.

Notes tendered after the consent deadline will receive the same amount, less a $30.00 per $1,000 principal amount consent payment.

The company will also pay accrued interest to the settlement date for the notes.

Morgan Stanley & Co. Inc. (800 624-1808 or collect 212 761-1941) will act as dealer manager and solicitation agent for the offer. D.F. King & Co., Inc. (800 488-8075 or collect 212-269-5550) will act as information and tender agent.

Kansas City Southern is a Kansas City, Mo.-based railroad company. Kansas City Southern de Mexico operates in northeastern and central Mexico.

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