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Rail News: Kansas City Southern
KCSR opens mechanical shop in Mississippi, completes largest-ever debt transaction
Kansas City Southern Railway Co. (KCSR) on July 21 held a ribbon-cutting ceremony to mark the opening of a mechanical facility in Pearl, Miss.
The state-of-the-art facility near Jackson will better accommodate the continued traffic growth expected through High Oak Yard, railroad officials said in an item posted on the "KCS News" web page.
"Our employees recognize this as a premier repair facility, and we look forward to utilizing it to support growth for the company for years to come," said Senior Manager of Mechanical Maintenance Tim Perry.
KCSR last week also completed a $500 million, 30-year bond offering with a rate of 4.95 percent. It was the railroad's first bond issuance since October 2013 and largest-ever single debt transaction.
Proceeds from the offering will be used primarily to repay outstanding short-term debt, buy shares of KCS common stock under a $500 million stock repurchase program announced in May and fulfill other general corporate needs.
"We're pleased to have been able to tap the bond market for a significant amount of long-term capital at a time when interest rates still remain close to all-time low levels," said KCS Executive Vice President and Chief Financial Officer Mike Upchurch. "This new financing will enable us to restore KCSR’s credit line to full capacity, which we can then utilize to fund the attractive business opportunities that lie before us."
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