By Cristal Cody
Eureka Springs, Ark., May 11 – Kansas City Southern priced $250 million of 3.125% 10-year senior notes on Wednesday at 99.487 to yield 3.185%, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB) priced with a spread of 145 basis points over Treasuries.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. were the bookrunners.
The bonds are fully and unconditionally guaranteed by certain Kansas City Southern domestic subsidiaries.
Proceeds will be used to repay at maturity Kansas City Southern de Mexico, SA de CV’s outstanding floating-rate senior notes due 2016 and Kansas City Southern’s outstanding floating-rate notes due 2016 and for general corporate purposes.
The rail transportation holding company for Kansas City Southern Railway Co. is based in Kansas City, Mo.
| Issuer: | Kansas City Southern
|
| Amount: | $250 million
|
| Maturity: | June 1, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc.
|
| Senior co-manager: | Wells Fargo Securities, LLC
|
| Co-managers: | SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.125%
|
| Price: | 99.487
|
| Yield: | 3.185%
|
| Spread: | Treasuries plus 145 bps
|
| Call feature: | Make-whole call before March 1, 2026 at Treasuries plus 25 bps; on or after March 1, 2026 at par
|
| Pricing date: | May 11
|
| Settlement date: | May 16
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
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