(Kansas City Southern issued the following news release on January 12.)
KANSAS CITY, Mo. — The executive committee of the board of directors of Kansas City Southern (KCS) today announced the declaration of dividends on three classes of preferred stock as detailed below.
The executive committee of the board of directors declared the following dividends:
— A cash dividend of $.25 per share was declared on the outstanding 4% Non-Cumulative Preferred stock, payable on April 3, 2007, to shareholders of record at the close of business on March 12, 2007.
— A cash dividend of $5.4818 per share representing the dividend payment originally due May 15, 2006, was declared on the outstanding 4.25% Redeemable Cumulative Convertible Perpetual Preferred stock, Series C (the “Series C Preferred Stock”), payable February 15, 2007, to shareholders of record at the close of business on February 5, 2007.
— A cash dividend of $5.4254 per share representing the dividend payment originally due August 15, 2006, was declared on the outstanding Series C Preferred Stock, payable February 15, 2007, to shareholders of record at the close of business on February 5, 2007.
— A cash dividend of $5.3689 per share representing the dividend payment originally due November 15, 2006, was declared on the outstanding Series C Preferred Stock, payable February 15, 2007, to shareholders of record at the close of business on February 5, 2007.
— A cash dividend of $5.3125 per share representing the dividend payment due February 15, 2007, was declared on the outstanding Series C Preferred Stock, payable February 15, 2007, to shareholders of record at the close of business on February 5, 2007.
— A dividend payable in KCS common stock of $13.3050 per share representing the dividend payment originally due May 15, 2006, was declared on the outstanding 5 1/8% Cumulative Convertible Perpetual Preferred stock, Series D (the “Series D Preferred Stock”), payable February 15, 2007, to stockholders of record at the close of business on February 5, 2007.
— A dividend payable in KCS common stock of $13.1408 per share representing the dividend payment originally due August 15, 2006, was declared on the outstanding Series D Preferred Stock, payable February 15, 2007, to stockholders of record at the close of business on February 5, 2007.
— A dividend payable in KCS common stock of $12.9767 per share representing the dividend payment originally due November 15, 2006, was declared on the outstanding Series D Preferred Stock, payable February 15, 2007, to stockholders of record at the close of business on February 5, 2007.
— A dividend payable in KCS common stock of $12.8125 per share representing the dividend payment due February 15, 2007, was declared on the outstanding Series D Preferred Stock, payable February 15, 2007, to stockholders of record at the close of business on February 5, 2007.
The number of shares of KCS common stock payable to the record holders of the Series D Preferred Stock will be determined in accordance with the terms of the Certificate of Designations of the Series D Preferred Stock dated December 9, 2005.
Following payment of the above dividends, all dividend arrearages on the Series C Preferred Stock and Series D Preferred Stock will be satisfied.
“KCS’ improved operating performance for the first nine months of 2006, as evidenced by a substantial year-over-year increases in operating income and EBITDA, allows us to restore dividend payments at this time,” stated Chairman and Chief Executive Officer Michael R. Haverty.
Headquartered in Kansas City, Mo., KCS 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 México, serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, 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. KCS’ 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., Canada and Mexico.