Kansas City Southern’s Mexican unit raises tender offer for notes to $290 million

Kansas City Southern unit raises cash offer

KANSAS CITY, Mo. — Kansas City Southern said Friday its Mexican subsidiary has increased a cash tender offer announced just the day before.

The company said the subsidiary, Kansas City Southern de Mexico, S.A. de C.V., will buy up to $290 million in 9.375 percent senior notes due in 2012. Thursday it capped the offer at $240 million.

No other terms of the offer changed. Holders who tender notes by Jan. 21 will get $1,041.25 in cash for each $1,000 in principal, including an early-tender premium. Notes tendered after that and by the Feb. 4 deadline will get $1,011.25 in cash for each $1,000 in principal, the company said.

The company holds railroad investments in the United States, Mexico and Panama, including the Kansas City Southern Railway Co.

Shares rose $1.21, or 3.7 percent, to $33.62 in midday trading.