Kansas City Southern (“KCS”) (NYSE: KSU) today announced the expiration of the previously announced offer by its wholly owned subsidiary, The Kansas City Southern Railway Company (“KCSR”), to purchase its outstanding 9½% Senior Notes due 2008 (the “Notes”). The offer expired at midnight, New York City time on June 5, 2008 (the “Expiration Time”).
As announced on May 22, 2008, the total consideration for each $1,000 principal amount of Notes validly tendered and not validly withdrawn as of 5:00 p.m., New York City time on May 21, 2008 (the “Consent Deadline”) and accepted for payment was $1,024.29, plus accrued interest up to but not including the early settlement date of May 30, 2008. This amount also included a consent fee of $30.00 for all consents validly delivered and not validly revoked prior to the Consent Deadline. For Notes tendered after the Consent Deadline and prior to the Expiration Time, the tender offer consideration will be $994.29 for each $1,000 principal amount of Notes validly tendered and not validly withdrawn and accepted for payment, plus accrued interest to but not including the settlement date for such Notes. The settlement date for all Notes tendered between the Consent Deadline and the Expiration Time is June 9, 2008.
As of the Expiration Time, a total of $198,720,000 aggregate principal amount of outstanding Notes had been validly tendered and accepted.
Morgan Stanley & Co., Incorporated and Banc of America Securities LLC acted as Dealer Managers and Consents Solicitation Agents in connection with the Offer and related consent solicitation. Questions regarding the Offer and consent solicitation may be directed to Morgan Stanley, at (800) 624-1808 (U.S. toll-free) or (212) 761-5797 (collect), or to Banc of America Securities, LLC, Debt Advisory Services, at (888) 292-0070 (U.S. toll-free) or (704) 388-9217 (collect).
Headquartered in Kansas City, Mo., KCS 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. KCS' 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., Canada and Mexico.
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
