KCSM Sells New Bond, Launches Tender

Kansas City Southern de Mexico has launched a tender for its 2013 and 2014 bonds and has sold a new $200m 2021 bond to fund it. The Ba3 Mexican subsidiary of the US railroad company priced the new longer bond at par with a 6.125% coupon. The issuer is offering to repurchase all of its $32.4m in outstanding 7.625% of 2013s and $165m in 7.375% 2014s, both at $1,040 per $1,000 principal, in the offer expiring June 6, it says. Bank of America Merrill Lynch is managing the tender and the new bond. KCSM has done similar operations before, raising $185m in new 2020 bonds, to buyback more expensive 2013 and 2016 bonds in December, and selling $300m in 2018s to buyback 2012 bonds in January 2010.