Kansas City Southern de Mexico tenders for 7 5/8% notes, 12½% notes

By Jennifer Chiou

New York, Nov. 2 - Kansas City Southern subsidiary Kansas City Southern de Mexico, SA de CV announced a cash tender offer for any and all of its $175 million of 7 5/8% senior notes due 2013 and any and all of its $130 million of 12½% senior notes due 2016.

The company is also soliciting consents to amend the 7 5/8% note indenture to eliminate or make less restrictive substantially all of the restrictive covenants and modify certain other provisions.

The offer will end at midnight ET on Dec. 1.

Holders who tender their 7 5/8% notes prior to 5 p.m. ET on Nov. 16 will receive $1,040.63 for each $1,000.00 principal amount of notes, including a consent payment of $30.00.

For the 12½% notes, the company said it will pay $1,240 for each $1,000 principal amount, including an early tender premium of $30.00 for those who tender prior to the same early deadline noted above.

Kansas City Southern de Mexico said it will also pay accrued interest.

The offer is conditioned on sufficient financing.

Bank of America Merrill Lynch is the dealer manager and solicitation agent (888 292-0070 or call collect 980 388-9217, attn: Debt Advisory Services). D.F. King & Co., Inc. is the information agent (800 859-8509 or 212 269-5550).

Based in Kansas City, Mo., Kansas City Southern is a transportation holding company that has railroad investments in the United States, Mexico and Panama.

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