KCS Announces Private Offering of $185 Million of Senior Notes Due 2020 (KSU)

Kansas City Southern KSU announced today that its wholly owned subsidiary, Kansas City Southern de México, S.A. de C.V., intends to commence an offering of $185 million aggregate principal amount of its Senior Notes due 2020 (the “Senior Notes”) in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). KCSM intends to use the net proceeds from the offering, together with cash on hand, to pay the consideration in a tender offer and consent solicitation undertaken by KCSM in respect of its existing 7-5/8% Senior Notes due 2013, to pay the consideration in a tender offer KCSM has undertaken with respect of its existing 12-1/2% Senior Notes due 2016 and to pay the fees and expenses associated therewith. The remaining net proceeds from this offering, if any, will be used for general corporate purposes. The Senior Notes have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States without registration under the Securities Act or pursuant to an applicable exemption from such registration. The Senior Notes have not been and will not be registered with the Mexican National Securities Registry (Registro Nacional de Valores) maintained by the Mexican National Banking and Securities Commission (Comision Nacional Bancaria y de Valores), or CNBV, and may not be offered or sold publicly, or otherwise be the subject of broker activities in Mexico, except pursuant to a private placement exemption set forth under Article 8 of the Mexican Securities Market Law (Ley del Mercado de Valores). This announcement does not constitute an offer to sell, or the solicitation of offers to buy, any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. 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 Mexico, S.A. de C.V., 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., Mexico and Canada.