KCS Announces Redemption of KCSM's 8% Senior Notes Due 2018
OREANDA-NEWS. Kansas City Southern (KCS) (NYSE: KSU) announced today that its wholly-owned subsidiary, Kansas City Southern de Mexico, S.A. de C.V. (KCSM), a Mexican corporation, will redeem all of the USD 62.8 million aggregate principal amount of its 8.0% Senior Notes Due 2018 (the “Notes”) outstanding on February 3, 2014 (the “Redemption Date”). KCSM expects to fund the redemption with a portion of the remaining proceeds from its October 2013 offering of USD 250.0 million Floating Rate Notes due 2016. The redemption price is 104.000% of the principal amount of the Notes to be redeemed. As February 3, 2014, is an interest payment date there will be no accrued and unpaid interest on the Redemption Date. U.S. Bank National Association is the trustee for the Notes.
Headquartered in Kansas City, MO, Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. Kansas City Southern's North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.
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