(The following story by Mark Davis appeared on The Kansas City Star website on September 29.)
KANSAS CITY, Mo. — Kansas City Southern’s Mexico subsidiary said this morning it has secured a $52.2 million loan to finance locomotives, another sign that some lenders and borrowers are finding terms they can agree on.
Last week, DST Systems Inc. gained a 5-year credit facility for up to $120 million secured by properties of its real estate operations and the company’s guarantee. It’s borrowing from a group of banks led by Bank of the West in California.
Great Plains Energy Inc. lined up a $400 million credit line for its newly acquired Aquila subsidiaries from a consortium of banks led by Bank of America, also providing its guarantee to the bank.
In the deal for Kansas City Southern de Mexico S.A. de C.V., DVB Bank AG in Germany, is financing 79 percent of the purchase price of 29 locomotives the railroad bought in June. The company is paying 6.195 percent interest.
Shares of Kansas City Southern were off $2.34, or 5 percent, at $45.14 in morning trading on the New York Stock Exchange.