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Kansas City Southern gets consents needed to amend 9½%, 7½% notes
By Laura Lutz
Washington, Feb. 6 - Kansas City Southern announced that its subsidiary, The Kansas City Southern Railway Co., received the consents it needed to amend the note indentures for its 9½% senior notes due 2008 and 7½% senior notes due 2009.
The solicitation will expire at 5 p.m. ET on Feb. 9.
After increasing the consent fee on Jan. 29, the company will pay $7.50 per $1,000 principal amount of notes for which it received consents by 5 p.m. ET on Feb. 5.
The fee was originally set at $3.50 for the 9½% notes and $5.00 for the 7½% notes to those who delivered consents by the early deadline.
For each $1,000 principal amount, the company will still pay $1.00 for the 9½% notes and $1.50 for the 7½% notes if holders tender after the early deadline.
The consents allow the company to:
• Resolve an inconsistency in the inclusion of certain expenses, but not the income, of restricted subsidiaries in the calculation of the consolidated coverage ratio, a test which Kansas City Southern and some of its subsidiaries must meet to take certain actions, by amending the definition of consolidated interest expense;
• Permit the inclusion of certain expense items in permitted refinancings by defining refinancing indebtedness to include those items; and
• Obtain waivers of any defaults arising from actions taken in the absence of these proposed amendments.
D.F. King & Co., Inc. is the information agent (800 714-3313). Morgan Stanley & Co. Inc. (800 624-1808) and Banc of America Securities LLC (888 292-0070 or call collect 704 388-4813) are the solicitation agents.
Kansas City Southern is a railroad company based in Kansas City, Mo.
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