Kansas City Southern (“KCS”) (NYSE:KSU) today announced that its wholly-owned subsidiary, The Kansas City Southern Railway Company ("KCSR"), intends to commence an offering of $250 million of Senior Notes due 2015. KCSR intends to use the net proceeds from the offering to repurchase $200 million aggregate principal amount of its 9½% Senior Notes due 2008, to pay the fees and expenses associated with such repurchase, to reduce borrowings under the KCSR revolving credit facility, and for general corporate purposes.
This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the Senior Notes due 2015. The offering will be made under an effective shelf registration statement. A copy of the preliminary prospectus supplement and related base prospectus may be obtained from the SEC's website at www.sec.gov. Alternatively, the underwriters will provide copies upon request to:
Morgan Stanley
Prospectus Department
c/o Dominick Ruscitti
180 Varick Street
New York, NY 10014
Bank of America Securities LLC
Prospectus Department
100 W. 33rd Street
3rd Floor
New York, NY 10001
Tel: (800) 294-1322
dg.prospectus_distribution@bofasecurities.com
Headquartered in Kansas City, Mo., Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. Kansas City Southern's North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.
This press release may include statements concerning potential future events involving KCS and its subsidiaries, which could materially differ from the events that actually occur. The differences could be caused by a number of factors including those factors identified in the "Risk Factors" and the "Cautionary Information" sections of KCS' Form 10-K for the most recently ended fiscal year, filed by KCS with the Securities and Exchange Commission (SEC) (Commission file no. 1-4717). KCS will not update any forward-looking statements in this press release to reflect future events or developments.
Contacts:
Ginger L. Adamiak, 816-983-1501
gadamiak@KCSouthern.com
