Date: Thu, 20 Nov 1997 17:39:56 GMT Server: Apache/1.2.4 Last-Modified: Mon, 16 Jun 1997 14:10:55 GMT ETag: "1104-c04-33a5496f" Content-Length: 3076 Accept-Ranges: bytes Connection: close Content-Type: text/html
June 12, 1997
Kansas City Southern Industries and Transportacion Ferroviaria Mexicana have announced the bond financing for the Mexican Railroad, which comprises a $400 million, two-tranche senior notes and senior discount debentures offering to be used primarily for financing the purchase of 80 percent of the shares of TFM.
TFM, which is 49 percent owned by KCSI, was the successful bidder in the Mexican rail privatization process to operate a 50-year concession for the Northeast Rail Lines, which carry more than 40 percent of the total freight revenue in Mexico and comprise the most actively traveled rail corridor in Mexico. The Northeast Rail Lines also provide access to the United States through Nuevo Laredo, the largest rail freight exchange point between Mexico and the United States, where approximately 50 percent of all rail traffic, based on revenue, crosses the border.
The $150 million, 10.25 percent senior notes due June 15, 2007, were priced at 100 percent of par. The senior discount debentures, due June 15, 2009, represent approximately $250 million of proceeds and bear an interest rate of 11.75 percent beginning June 15, 2002. The notes and debentures were rated B+ by Standard Poor's and B2 by Moody's.
The securities have not been registered under the Securities Act of 1933 and may not be offered or sold with the United States absent registration or an available exemption from such registration requirements.
This announcement does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
TFM is also jointly owned by Transportacion Maritima Mexicana, S.A. de
C.V. (NYSE
:TMM.A
- news)
(51 percent) and headquartered in Mexico City. TMM is Latin America's largest
transportation company. Kansas City Southern Industries Inc. is a diversified
holding company engaged in the business of railroad transportation through
its Kansas City Southern Railway subsidiary, which operates a rail network
in 12 Midwestern and Southern states.
Contact:
Kansas City Southern Industries Inc. Landon H. Rowland, 816/983-1393 Joseph D. Monello, 816/983-1213 or Kansas City Southern Railway Co. Michael R. Haverty, 816/983-1389 back to KCSI main screen