Kansas City Southern talks $500 million 30-year bonds at high-100 bps area over Treasuries

By Aleesia Forni

Virginia Beach, July 22 – Kansas City Southern Railway Co. is in the market on Wednesday with a $500 million issue of 30-year senior notes (Baa3) talked in the high-100 basis points area over Treasuries, according to a market source and a 424B3 filing with the Securities and Exchange Commission.

BofA Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are the bookrunners.

Proceeds will be used to repay outstanding commercial paper, to repurchase shares of common stock and for general corporate purposes.

The notes are fully and unconditionally guaranteed by Kansas City Southern.

Based in Kansas City, Mo., the transportation holding company has railroad investments in the United States, Mexico and Panama.

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