By Aleesia Forni
Virginia Beach, July 22 – Kansas City Southern Railway Co. priced on Wednesday a $500 million issue of 4.95% 30-year senior notes (Baa3/BBB-/BBB-) at Treasuries plus 190 basis points, according to a market source and a 424B3 filing with the Securities and Exchange Commission.
The notes sold at 99.733 to yield 4.967%.
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.
| Issuer: | Kansas City Southern Railway Co.
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| Guarantor: | Kansas City Southern
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Aug. 15, 2045
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| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
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| Senior co-managers: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC
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| Co-managers: | Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc.
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| Coupon: | 4.95%
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| Price: | 99.733
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| Yield: | 4.967%
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| Spread: | Treasuries plus 190 bps
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| Trade date: | July 22
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| Settlement date: | July 27
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| Ratings: | Moody’s: Baa3
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| Standard & Poor’s: BBB-
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| Fitch: BBB-
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| Price talk: | Treasuries plus high-100 bps area
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| Make-whole call: | Treasuries plus 30 bps prior to Feb. 15, 2045, then callable at par
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| Distribution: | SEC-registered
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