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

New York, Dec. 1 - Kansas City Southern said that its wholly owned subsidiary, Kansas City Southern de Mexico, SA de CV, extended the tender offer for its 175 million 7 5/8% senior notes due 2013 and its $130 million 12½% senior notes due 2016.

The expiration will now be midnight ET on Dec. 17, pushed back from midnight ET on Dec. 1.

As of 5 p.m. ET on Dec. 1, holders had tendered $142,352,000 of the 7 5/8% notes and $31,894,000 of the 12½% notes.

At the previous announcement on Nov. 17, Kansas City Southern said it had received the necessary consents to adopt proposed amendments to the indenture governing the 7 5/8% notes.

Kansas City Southern de Mexico solicited consents to amendments that would eliminate or make less restrictive substantially all of the restrictive covenants and modify certain other provisions.

The subsidiary began the consent solicitation and a cash tender offer for any and all of its $175 million of 7 5/8% notes, as well as any and all of its $130 million of 12½% senior notes due 2016, on Nov. 2.

As of 5 p.m. ET on Nov. 16, the consent deadline, holders of $138,855,000 principal amount of 7 5/8% notes tendered their notes and delivered consents.

Holders who tendered their 7 5/8% notes before the consent deadline will receive $1,040.63 for each $1,000 principal amount of notes, which includes a consent payment of $30.00. Holders who tender their notes after the consent deadline but before the expiration time will receive $1,010.63 per $1,000 of 7 5/8% notes.

The company also announced that as of 5 p.m. ET on Nov. 16, the early tender deadline for the 12½% notes, holders tendered $31,594,000 principal amount of the notes.

Holders who tendered their 12½% notes before the early tender deadline will receive $1,240 for each $1,000 of notes, which includes an early tender premium of $30. Holders who tender their notes after that time but prior to the expiration time will receive $1,210 per $1,000 of 12½% notes.

Kansas City Southern de Mexico said it will also pay accrued interest to but excluding the applicable settlement date, which is expected to be Nov. 22 for the notes tendered before the consent deadline or early tender deadline and Dec. 2 for notes tendered after that time and accepted for purchase.

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

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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