By Business Wirevia The Motley Fool
Filed under: Investing
KCS Announces Tender Offers and Consent Solicitations
KANSAS CITY, Mo.–(BUSINESS WIRE)– Kansas City Southern (“KCS”) (NYS: KSU) announced today that its wholly-owned subsidiary, Kansas City Southern de México, S.A. de C.V., a Mexican corporation ( “KCSM“), has commenced (1) a cash tender offer for any and all of its $300.0 million outstanding aggregate principal amount of 8% Senior Notes due 2018 (CUSIP No. 485161AH6) (the “2018 Notes”) and a consent solicitation to amend the related indenture to, among other things, eliminate substantially all of the restrictive covenants and certain events of default contained therein (the “2018 Notes Offer”), (2) a cash tender offer for any and all of its $185.0 million outstanding aggregate principal amount of 6.625% Senior Notes due 2020 (CUSIP No. 485161AK9) (the “2020 Notes” and, together with the 2018 Notes, the “Any and All Notes”) and a consent solicitation to amend the related indenture to, among other things, eliminate substantially all of the restrictive covenants and certain events of default contained therein (the “2020 Notes Offer” and, together with the 2018 Notes Offer, the “Any and All Offers”) and (3) a cash tender offer for an amount of its 6.125% Senior Notes due 2021 (CUSIP No. 485161AM5) (the “Maximum Tender Offer Notes” and, together with the Any and All Notes, the “Notes”) such that the aggregate consideration paid to holders of the Maximum Tender Offer Notes (excluding accrued and unpaid interest thereon) does not exceed $650.0 million less the aggregate amount of consideration (excluding accrued and unpaid interest) paid or payable by KCSM to the holders of its Any and All Notes whose notes were validly tendered and accepted for purchase pursuant to the Any and All Offers (the “Maximum Tender Offer” and, together with the Any and All Offers, the “Offers”). The terms and conditions of the Offers are set forth in the Offer to Purchase and Consent Solicitation Statement dated April 10, 2013 related thereto (the “Offer to Purchase”).
Each of the Offers will expire at 12:00 Midnight, New York City time, on May 7, 2013, unless extended by KCSM (such date and time, as they may be extended, the “Expiration Time“). Each Offer is subject to a condition that KCSM consummates a debt financing transaction on terms and conditions acceptable to KCSM, in its sole discretion, and other customary conditions. KCSM expressly reserves the right, in its sole discretion, subject to applicable law, to extend, amend or terminate any or all of the Offers at any time prior to the Expiration Time.
Notes validly tendered and not validly withdrawn at or prior to 5:00
Source: FULL ARTICLE at DailyFinance