KANSAS CITY, Mo. — Kansas City Southern announced on June 5 that it had priced $200 million of senior notes due 2009 at par with a coupon of 71/2%.
The notes will not be callable before maturity except that up to 35% may be redeemed using equity proceeds until 2005 at a price of 107.5%. Proceeds of the offering will be used to repay bank debt and other senior indebtedness and to pay placement fees and expenses associated with the offering. The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act.
KCS is a transportation holding company that has railroad investments in the U.S., Mexico, and Panama. Its primary holding is Kansas City Southern Railway. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the U.S. KCS’ rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the U.S., Canada, and Mexico.