KCS Announces Establishment of $500M KCSR Credit Agreement

Kansas City Southern KSU today announced its subsidiary the Kansas City Southern Railway has entered into a new credit agreement with the various financial institutions as Lenders, The Bank of Nova Scotia as Administrative and Collateral Agent, Bank of America as Syndication Agent and Compass Bank, JPMorgan Chase Bank and Morgan Stanley Bank as Co-documentation Agents. This credit facility consists of a five-year $200 million revolver and five and a half year $300 million term loan A. The cash proceeds from the new credit facility, along with cash on hand will be used to refinance $306 million due April 2013 under the current KCSR credit facility. With these new facilities KCSR will improve its liquidity, financial flexibility, and extend its maturities.