Kansas City Southern International gets $300 million of term loans

By Marisa Wong

Madison, Wis., Oct. 24 – Kansas City Southern’s wholly owned subsidiary, Kansas City Southern International Investments, SA, entered into an unsecured credit agreement on Oct. 22 with Bank of Tokyo-Mitsubishi UFJ, Ltd. as lender, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement consists of an initial term loan and a delayed-draw term loan in an aggregate principal amount of up to $300 million.

Kansas City Southern International borrowed $100 million of the initial term loan at closing and may borrow up to $200 million of the delayed-draw term loan in a single draw on or prior to Dec. 31.

Repayment of each loan is due 90 days after each borrowing date.

Interest is equal to Libor plus 125 basis points.

Loan proceeds will be used for general corporate purposes.

Kansas City Southern is a railroad company based in Kansas City, Mo.

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