OREANDA-NEWS. Kansas City Southern (“KCS”) (NYSE:KSU) announced today that its wholly-owned subsidiary, The Kansas City Southern Railway Company (“KCSR”), has priced USD 200 million aggregate principal amount of its 3.85% Senior Notes due 2023 (the “KCSR Senior Notes”) in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The offering by KCSR is expected to close on October 29, 2013. KCSR intends to use the net proceeds from the offering to (i) finance the purchase of certain leased equipment, pay any early lease termination charges related thereto and finance the purchase of new equipment to replace certain leased equipment under expiring leases and (ii) pay fees and expenses related to the offering. KCSR is currently negotiating non-binding letters of intent with respect to these purchases. Any net proceeds not used for those purposes will be used for general corporate purposes.

Kansas City Southern de Mexico, S.A. de C.V. (“KCSM”), another wholly-owned subsidiary of KCS, today also priced USD 250 million aggregate principal amount of its Floating Rate Senior Notes due 2016 (the “KCSM Senior Notes”) in a private offering that is exempt from registration under the Securities Act . The offering by KCSM is expected to close on October 29, 2013. KCSM intends to use the net proceeds from the offering to (i) redeem the remaining USD 29.4 million outstanding of its 6.125% Senior Notes due 2021 and the remaining USD 62.8 million outstanding of its 8.0% Senior Notes due 2018, (ii) finance the purchase of certain leased equipment, pay any early lease termination charges related thereto and finance the purchase of new equipment to replace certain leased equipment under expiring leases and (iii) pay fees and expenses related to the offering. KCSM is currently negotiating non-binding letters of intent with respect to these purchases. Any net proceeds not used for those purposes will be used for general corporate purposes.

Neither the KCSR Senior Notes nor the KCSM Senior Notes have been 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.

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 KCSR, 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 Lazaro Cardenas, 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.