TFM ups payment in tender for 11¾% notes

New York, April 13 - Kansas City Southern said its majority owned subsidiary, TFM, SA de CV, has increased the payment in its cash tender offer for any and all of its $443.5 million principal amount of 11¾% senior discount debentures due 2009.

Holders who tender by the consent deadline will now receive $1,005.00 per $1,000 principal amount, including a $40.00 consent payment, up from $1,002.50 previously. Those who tender after the consent deadline will receive $965.00 per $1,000 principal amount, up from $962.50 previously.

TFM will also pay accrued interest up to but excluding the settlement date.

TFM started the tender on April 1 and said it was also soliciting consents to amend the indenture.

The offer runs through midnight ET on April 28. The consent solicitation ends at 5 p.m. ET on April 14.

Holders who tender will be required to deliver consents and vice versa.

The amendments to the indenture will reduce the notice period for a call to three days from 30 days. TFM said it expects to call any notes not tendered at par plus accrued interest.

Kansas City Southern is a Kansas City, Mo.-based railroad.

Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-1457, attention: Riccardo Cumerlato) is the dealer manager, and D.F. King & Co, Inc. is the information agent (800 488-8075, banks and brokerages call 212 269-5550).

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