Kansas City Southern Announces Pricing of New Senior Notes
April 30 2018 - 4:30PM
Business Wire
Kansas City Southern (“KCS”) (NYSE:KSU) today announced the
pricing of $500 million in aggregate principal amount of its 4.70%
Senior Notes due 2048 pursuant to KCS’s shelf registration
statement filed with the Securities and Exchange Commission. The
offering by KCS is expected to close on May 3, 2018. KCS intends to
use the net proceeds from the offering (i) to repay KCS’s
outstanding commercial paper; (ii) to refinance a locomotive lease
and certain equipment loans; and (iii) for 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 The Kansas City Southern
Railway Company, serving the central and south central U.S. KCS’s
international holdings include Kansas City Southern de México, S.A.
de C.V. (“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 railway network 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 KCSM; the termination of, or failure to renew,
agreements with customers, other railroads and third parties;
access to capital; disruptions to KCS’s technology infrastructure,
including its computer systems; natural events such as severe
weather, hurricanes and floods; market and regulatory responses to
climate change; legislative and regulatory developments and
disputes; rail accidents or other incidents or accidents on KCS’s
rail network or at KCS’s 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; unavailability of qualified personnel; labor difficulties,
including strikes and work stoppages; acts of terrorism or risk of
terrorist activities; war or risk of war; domestic and
international economic, political and social conditions; the level
of trade between the United States and Asia or Mexico; fluctuations
in the peso-dollar exchange rate; 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’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2017 (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: https://www.businesswire.com/news/home/20180430006500/en/
Kansas City SouthernAshley Thorne,
816-983-1530athorne@kcsouthern.com
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