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News May 16, 2016

Shearman & Sterling Advises on Kansas City Southern’s $250 Million Notes Offering

Shearman & Sterling represented J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC, as lead joint book-running managers, in connection with a $250 million bond offering by Kansas City Southern (KCS). The offering is being used to repay the outstanding floating rate senior notes, each issued by KCS and Kansas City Southern de México, S.A. de C.V. (KCSM) and for general corporate purposes, including the repayment of outstanding commercial paper issued by KCS. The offering consisted of 10-year senior notes.

KCS is a Delaware holding company with domestic and international rail operations in the United States and Mexico. The Kansas City Southern Railway Company operates a primary rail line in the Midwest and Southeast regions of the United States, while KCSM operates a primary rail line between Northeastern and Central Mexico and the United States.

The Shearman & Sterling team included partner Merritt Johnson (New York-Capital Markets); of counsel Robert Treuhold (New York-Capital Markets); and associate Minkyu Park (New York-Corporate Group). Other Shearman & Sterling lawyers involved in the bond offering were partner Ethan Harris (Washington, DC-Tax); counsel Jason Pratt (New York-Environmental); associates Jenny Ding (New York-Financial Institutions Advisory & Financial Regulatory Group) and Eric Grosshandler (New York-Tax); and visiting attorney Alejandro Garcia (New York-Capital Markets).