By Jennifer Chiou
New York, Oct. 24 - Kansas City Southern announced that wholly owned subsidiary Kansas City Southern Railway Co. priced $200 million of 3.85% senior notes due 2023, while another subsidiary, Kansas City Southern de Mexico, SA de CV, priced $250 million of floating-rate senior notes due 2016.
According to a news release, the 3.85% notes priced in a private offering that is exempt from registration.
Proceeds will be used to, among other things, finance the purchase of certain leased equipment, to pay any early lease termination charges and to fund the purchase of new equipment to replace equipment under expiring leases.
The Kansas City Southern de Mexico notes were also part of a private offering that is exempt from registration. Partial proceeds are planned for the redemption of the company's $29.4 million of remaining 6.125% senior notes due 2021 and $62.8 million of 8% senior notes due 2018.
Settlement for both issues is anticipated for Oct. 29.
Based in Kansas City, Mo., the transportation holding company has railroad investments in the United States, Mexico and Panama.
| Issuers: | Kansas City Southern Railway Co. and Kansas City Southern de Mexico SA de CV
|
| Amount: | $450 million
|
| Description: | Notes
|
| Trade date: | Oct. 24
|
| Settlement date: | Oct. 29
|
|
|
| 10-year bonds
|
| Issuer: | Kansas City Southern Railway Co.
|
| Issue: | Fixed-rate senior notes
|
| Amount: | $200 million
|
| Coupon: | 3.85%
|
| Maturity: | 2023
|
|
|
| Five-year notes
|
| Issuer: | Kansas City Southern de Mexico SA de CV
|
| Issue: | Floating-rate senior notes
|
| Amount: | $250 million
|
| Maturity: | 2016
|
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