KCS Announces Amendment and Extension of Credit Facilities

  KCS Announces Amendment and Extension of Credit Facilities

Business Wire

KANSAS CITY, Mo. -- November 21, 2012

Kansas City Southern (“KCS”) (NYSE: KSU) announced today that its wholly-owned
subsidiary, The Kansas City Southern Railway Company (“KCSR” or “the
Company”), has completed an amendment to its credit facilities, which consist
of a $200 million revolving credit facility and two term loans with a total
outstanding amount of $551 million, including a $285 million Term Loan A and a
$266 million Term Loan A-2. The amendment eliminates or modifies a number of
restrictive covenants in KCSR’s facilities in order to achieve consistency
between KCSR and firms with investment grade credit ratings. The amendment
also includes a “fall-away collateral” provision whereby KCSR’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, KCSR has one such rating, from Fitch). In addition to the
amendment, KCSR extended the maturities of its revolving credit facility from
July 15, 2016, to November 15, 2017, and its term loans from January 15, 2017,
to May 15, 2018.

The amendment and extension required a 100% affirmative vote from the 21
participating lenders. Bank of America Merrill Lynch acted as Joint Lead
Arranger and Bookrunning Manager and Syndication Agent and J.P. Morgan acted
as Joint Lead Arranger.

“This amendment positions KCSR’s credit facilities on par with those in place
at investment grade companies,” commented Mike Upchurch, Kansas City
Southern’s Executive Vice President and Chief Financial Officer. “Our ability
to achieve a 100% vote on this amendment from our bank group is evidence of
our strong credit profile and the robust, supportive relationships we have
built with our lenders.”

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.

This release contains forward-looking statements that are not based upon
historical information. Readers can identify these forward-looking statements
by the use of such verbs as “expects,” “anticipates,” “believes” or similar
verbs or conjugations of such verbs. Such forward-looking statements are based
upon information currently available to management and management’s perception
thereof as of the date of this news release. However, such statements are
dependent on and, therefore, can be influenced by, a number of external
variables over which management has little or no control, including: domestic
and international economic conditions; interest rates; the business
environment in industries that produce and consume rail freight; competition
and consolidation within the transportation industry; fluctuation in prices or
availability of key materials, in particular diesel fuel; labor difficulties,
including strikes and work stoppages; credit risk of customers and
counterparties and their failure to meet their financial obligations; the
outcome of claims and litigation; legislative and regulatory developments;
political and economic conditions in Mexico and the level of trade between the
United States and Mexico; changes in securities and capital markets;
disruptions to the Company's technology infrastructure, including its computer
systems; natural events such as severe weather, hurricanes and floods; acts of
terrorism or risk of terrorist activities; war or risk of war; and other
factors affecting the operation of the business of KCS and KCSR. More detailed
information about these factors may be found in filings by KCS with the
Securities and Exchange Commission, including its most recent Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking
statements are not, and should not be relied upon as, a guarantee of future
performance or results, nor will they necessarily prove to be accurate
indications of the times at or by which any such performance or results will
be achieved. As a result, actual outcomes and results may differ materially
from those expressed in forward-looking statements. KCS and KCSR are under no
obligation to, and expressly disclaim any such obligation to, update or alter
their forward-looking statements, whether as a result of new information,
future events or otherwise.


Kansas City Southern
William H. Galligan, (816) 983-1551
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