WASHINGTON — Kansas City Southern amended and restated its credit agreement in June in connection with the repayment of certain term loans from a previous credit pact, reports a wire service.
The new agreement provides the company’s Kansas City Southern Railway unit with a $150 million Tranche B term loan, maturing June 12, 2008, and a $100 million revolving credit facility, maturing Jan. 11, 2006.
Letters of credit reaching $15 million are also available under the revolving credit agreement, according to a document filed with the Securities and Exchange Commission last Tuesday.
Kansas City Southern said it could use the borrowings under the revolving credit facility for working capital and for general purposes.
Borrowings under the amended credit deal are secured by substantially all of the company’s assets and are guaranteed by the majority of its units.
Kansas City Southern said roughly $1.1 million of debt issuance costs related to the amended credit deal were deferred and are being amortized over the respective term of the loans.
Extraordinary debt retirement costs associated with prepaying term loans under the credit pact totaled $4.3 million, or $2.7 million net of income taxes, the filing said.