(Kansas City Southern issued the following news release on November 13.)
KANSAS CITY, Mo. — Kansas City Southern announced today that its wholly owned subsidiary, Kansas City Southern de México, S.A. de C.V. (formerly known as TFM, S.A. de C.V.) (the “Company”), intends to offer approximately $150.0 million in aggregate principal amount of senior notes due 2013 (the “Senior Notes”). The Company intends to use the net proceeds of the offering to purchase or satisfy and discharge its outstanding 10.25% Senior Notes due 2007 and repay outstanding term loan indebtedness.
The Senior Notes will be offered to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S. The Senior Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the Senior Notes nor shall there be any sale of the Senior Notes in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central U.S. Its international holdings include Kansas City Southern de México, serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS’s North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico.