KCS Announces Pricing of KCSR’s Offering of Senior Notes
July 23 2015 - 8:45AM
Business Wire
Kansas City Southern (“KCS”) (NYSE:KSU) announced today that on
July 22, 2015, its wholly-owned subsidiary, The Kansas City
Southern Railway Company (“KCSR”), priced $500.0 million aggregate
principal amount of its 4.95% Senior Notes due 2045 pursuant to
KCSR’s shelf registration statement filed with the Securities and
Exchange Commission. The offering by KCSR is expected to close on
July 27, 2015. KCSR intends to use the net proceeds from the
offering for (i) the repayment of all or a portion of the
outstanding commercial paper issued by KCSR, (ii) the repurchase of
shares of KCS common stock and (iii) general corporate
purposes.
This announcement does not constitute an offer to sell, or the
solicitation of an offer 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.
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 KCSR, 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 Lazaro Cardenas, Tampico and
Veracruz, and a 50 percent interest in the 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.,
Mexico and Canada.
This news release contains “forward-looking
statements” within the meaning of the securities laws
concerning potential future events involving KCS and its
subsidiaries, which could materially differ from the events that
actually occur. Words such as “projects,”
“estimates,” “forecasts,” “believes,” “intends,” “expects,” “anticipates,” and
similar expressions are intended to identify many of these
forward-looking statements. Such forward-looking statements are
based upon information currently available to management and
management’s perception thereof as of the date hereof. Differences
that actually occur could be caused by a number of external factors
over which management has little or no control, including:
competition and consolidation within the transportation industry;
the business environment in industries that produce and use items
shipped by rail; loss of the rail concession of
KCS’ subsidiary, Kansas City Southern
de México, S.A. de C.V.; the termination of, or failure to renew,
agreements with customers, other railroads and third parties;
interest rates; access to capital; disruptions to
KCS’ technology infrastructure, including its computer
systems; natural events such as severe weather, hurricanes and
floods; market and regulatory responses to climate change; credit
risk of customers and counterparties and their failure to meet
their financial obligations; legislative and regulatory
developments and disputes; rail accidents or other incidents or
accidents on KCS’ rail network or at KCS’ facilities or
customer facilities involving the release of hazardous materials,
including toxic inhalation hazards; fluctuation in prices or
availability of key materials, in particular diesel fuel;
dependency on certain key suppliers of core rail equipment; changes
in securities and capital markets; availability of qualified
personnel; labor difficulties, including strikes and work
stoppages; insufficiency of insurance to cover lost revenue,
profits or other damages; acts of terrorism or risk of terrorist
activities; war or risk of war; domestic and international economic
conditions; political and economic conditions in Mexico and the
level of trade between the United States and Mexico; increased
demand and traffic congestion; the outcome of claims and litigation
involving KCS or its subsidiaries; and other factors affecting the
operation of the business. More detailed information about factors
that could affect future events may be found in filings by KCS with
the Securities and Exchange Commission, including KCS’ Annual
Report on Form 10-K for the year ended December 31, 2014 (File No.
1-4717) and subsequent reports. Forward-looking statements are not,
and should not be relied upon as, a guarantee of future performance
or results, nor will they necessarily prove to be accurate
indications of the times at or by which any such performance or
results will be achieved. As a result, actual outcomes and results
may differ materially from those expressed in forward-looking
statements. KCS is not obligated to update any forward-looking
statements to reflect future events or developments.
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version on businesswire.com: http://www.businesswire.com/news/home/20150723005693/en/
Kansas City SouthernWilliam H. Galligan,
816-983-1551bgalligan@kcsouthern.com
Kansas City Southern (NYSE:KSU)
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