This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

KCS Announces Amendment And Extension Of KCSM’s Credit Facility

Stocks in this article: KSU

Kansas City Southern (“KCS”) (NYSE: KSU) announced today that its wholly-owned subsidiary, Kansas City Southern de Mexico, S.A. de C.V. (“KCSM” or “the Company”), has completed an amendment and extension to its $200 million revolving credit facility. Similar to the amendment announced last week by another KCS subsidiary, The Kansas City Southern Railway Company (“KCSR”), the KCSM amendment achieves the following: (a) Eliminates or modifies a number of restrictive covenants in KCSM’s facilities in order to achieve consistency between KCSM and firms with investment grade credit ratings; (b) Incorporates a “fall-away collateral” provision whereby KCSM’s facilities, which are currently secured, convert to unsecured obligations when investment grade credit ratings are assigned by at least two of the three primary rating agencies (currently, KCSM has one such rating, from Fitch); and (c) Extends the maturity of the revolving credit facility from September 30, 2016, to November 15, 2017.

The amendment and extension required a 100% affirmative vote from the eight participating lenders. J.P. Morgan acted as Joint Lead Arranger and Bookrunning Manager and Syndication Agent and Bank of America Merrill Lynch acted as Joint Lead Arranger.

“We are very pleased to have completed this amendment to the KCSM revolving credit facility,” commented Mike Upchurch, Kansas City Southern’s Executive Vice President and Chief Financial Officer. “Coupled with last week’s amendment at KCSR, we now have credit facilities that contain investment-grade terms and covenants appropriate for a company with our strong credit profile.”

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's 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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs