By Paul A. Harris
St. Louis, Nov. 13 - Kansas City Southern de Mexico, SA de CV priced an upsized $175 million issue of seven-year senior notes (B3/expected B-) at par to yield 7 5/8% in a quick-to-market Monday transaction, according to an informed source.
The yield came tight to the 7¾% area price talk.
Morgan Stanley and Banc of America Securities LLC were joint bookrunners for the issue, which was priced via Rule 144A with registration rights and via Regulation S. The co-managers were BBVA Securities, BMO Capital Markets and Scotia Capital.
The issue was upsized from $150 million.
Proceeds will be used to redeem the company's outstanding 10¼% senior notes due 2007 and to repay bank debt.
The issuer is a wholly owned subsidiary of Kansas City Southern, a Kansas City, Mo., transportation holding company with railroad investments in the United States, Mexico and Panama.
| Issuer: | Kansas City Southern de Mexico, SA de CV
|
| Amount: | $175 million (increased from $150 million)
|
| Maturity: | Dec. 1, 2013
|
| Security description: | Senior notes
|
| Bookrunners: | Morgan Stanley, Banc of America Securities LLC
|
| Co-managers: | BBVA Securities, BMO Capital Markets, Scotia Capital
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 304
|
| Call features: | Callable on Dec. 1, 2010 at 103.813, 101.906, par on and after Dec. 1, 2012
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at 107.625
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: expected B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 7¾% area
|
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