Kansas City Southern reports details on unit's $100 million revolver

By Susanna Moon

Chicago, Sept. 3 - Kansas City Southern de Mexico, SA de CV secured a credit facility consisting of a revolver for up to $100 million, a letter-of-credit facility for up to $10 million and a swingline facility for up to $10 million, according to an 8-K filing by Kansas City Southern with the Securities and Exchange Commission.

The letter of credit and swingline facility constitute usage under the revolver.

The loans under the revolver bear interest at floating rates. At the borrower's option, the loans will bear interest at the greater of:

• The Bank of Nova Scotia's base rate;

• Federal Funds rate plus 50 basis points;

• One-month Libor plus 100 bps plus a margin of 200 bps to 350 bps, depending on the leverage ratio; and

• Libor plus a margin of 300 bps to 450 bps, depending on the leverage ratio.

The outstanding principal balance of loans under the swingline facility will bear interest at the Base Rate plus a margin of 200 bps to 350 bps, depending on the leverage ratio.

The credit agreement is secured by accounts receivable and locomotives and by some of the company's subsidiaries.

The Bank of Nova Scotia is the administrative agent for the lenders. Scotiabank Inverlat, SA, Institucion de Banca Multiple and Grupo Financiero Scotiabank Inverlat are collateral agents, and Scotia Capital and Banc of America Securities LLC are joint lead arrangers and bookrunners.

Kansas City Southern said on Aug. 31 that it closed on a new $100 million revolver for Kansas City Southern de Mexico.

The revolver will improve liquidity and financial flexibility.

The issuer is a wholly owned subsidiary of Kansas City Southern, a Kansas City, Mo.-based freight rail transportation company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.