(The Associated Press circulated the following on March 23, 2009.)
KANSAS CITY, Mo. — Regional railroad operator Kansas City Southern says it plans to raise up to $275 million through debt and equity sales as the economy hurts traffic along its rail lines.
The Kansas City-based company said Monday it will privately sell $200 million in debt for its Mexican subsidiary, Kansas City Southern de Mexico, while the parent company may issue up to $75 million in equity. The money would be used to pay off its existing debt and is expected to keep the company liquid through the end of 2010.
The company said carload volumes in the first quarter have declined 5.9 percent for its U.S. operations and 25.9 percent for its Mexican operations. The Mexican subsidiary is also suffering from the continued weakness of the peso against the U.S. dollar.