Kansas City Southern Announces Pricing of Senior Notes
May 11 2016 - 6:05PM
Business Wire
Kansas City Southern (“KCS”) (NYSE:KSU) today announced the
pricing of $250.0 million in aggregate principal amount of its
3.125% Senior Notes due 2026 pursuant to KCS’s shelf registration
statement filed with the Securities and Exchange Commission. The
offering by KCS is expected to close on May 16, 2016. KCS intends
to use the net proceeds from the offering for (i) the repayment at
maturity of the outstanding principal amount of Kansas City
Southern de México, S.A. de C.V.’s (“KCSM”) Floating Rate Senior
Notes due 2016 and KCS’s Floating Rate Senior Notes due 2016 and
(ii) general corporate purposes, including the repayment of
outstanding commercial paper issued by KCS.
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 The Kansas City Southern
Railway Company, serving the central and south central U.S. KCS’s
international holdings include KCSM, serving northeastern and
central Mexico and the port cities of Lázaro Cárdenas, 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’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 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: the
outcome of claims and litigation, including those related to
environmental contamination, personal injuries and property damage;
changes in legislation and regulations or revisions of controlling
authority; the adverse impact of any termination or revocation of
KCSM’s Concession by the Mexican government; natural events such as
severe weather, fire, floods, hurricanes, earthquakes or other
disruptions to KCS’s operating systems, structures and equipment or
the ability of customers to produce or deliver their products and
the lack of adequate insurance for such catastrophic losses; United
States, Mexican and global economic, political and social
conditions; the effects of the North American Free Trade Agreement,
or NAFTA, on the level of trade among the United States, Mexico and
Canada; the level of trade between the United States and Asia or
Mexico; the effects of fluctuations in the peso-dollar exchange
rate; the effects of adverse general economic conditions affecting
customer demand and the industries and geographic areas that
produce and consume the commodities KCS carries; the dependence on
the stability, availability and security of the information
technology systems to operate its business; the effect of demand
for KCS’s services exceeding network capacity or traffic congestion
on operating efficiencies and service reliability; uncertainties
regarding the litigation KCS faces and any future claims and
litigation; the impact of competition, including competition from
other rail carriers, trucking companies and maritime shippers in
the United States and Mexico; KCS’s reliance on agreements with
other railroads and third parties to successfully implement its
business strategy, operations and growth and expansion plans,
including the strategy to convert customers from using trucking
services to rail transportation services; compliance with
environmental regulations; disruption in fuel supplies, changes in
fuel prices and KCS’s ability to recapture its costs of fuel from
customers; material adverse changes in economic and industry
conditions, including the availability of short and long-term
financing, both within the United States and Mexico and globally;
market and regulatory responses to climate change; changes in labor
costs and labor difficulties, including strikes and work stoppages
affecting either operations or customers’ abilities to deliver
goods for shipment; KCS’s reliance on certain key suppliers of core
rail equipment; availability of qualified personnel; acts of
terrorism, war or other acts of violence or crime or risk of such
activities; fluctuations in the market price for KCS’s common
stock; 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’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2015 (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/20160511006592/en/
Kansas City SouthernWilliam H. Galligan,
816-983-1551bgalligan@kcsouthern.com
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