Kansas City Southern plans to sell two-part guaranteed senior notes

By Devika Patel

Knoxville, Tenn., Nov. 14 – Kansas City Southern is expected to price an offering of guaranteed senior notes in two tranches, according to a 424B2 filing with the Securities and Exchange Commission.

The notes have a make-whole call and are then redeemable at par.

The bookrunners are BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the senior co-managers, and SunTrust Robinson Humphrey Inc. is the co-manager.

The notes are guaranteed by certain of Kansas City Southern’s domestic subsidiaries.

Proceeds will be used to make payments under the company’s accelerated share repurchase agreements, to redeem all or some of its 2.35% senior notes due 2020 and for general corporate purposes.

The rail transportation holding company for Kansas City Southern Railway Co. is based in Kansas City, Mo.

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