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Rail News Home Financials

6/21/2007



Rail News: Financials

Kansas City Southern de México refinances debt to reduce pre-tax interest payments



Kansas City Southern de México S.A. de C.V. (KCSM) recently refinanced a bank credit agreement by entering into a new agreement comprising an $81 million revolving credit facility maturing Dec. 20, 2011, and a $30 million term loan maturing June 29, 2012.

The railroad also redeemed $180 million in senior notes due 2012 using net proceeds from a $165 million senior note offering due 2014 and $30 million term loan facility. KCSM parent Kansas City Southern expects to record a second-quarter pre-tax charge of $6.5 million as a result of the transaction. In addition, KCSM refinanced the final outstanding principal amount of senior notes due June 15, 2007.

The refinancing transactions will save KCSM about $13 million annually in pre-tax interest expenses, according to the railroad.


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