Kansas City Southern has successfully completed a new common stock issue, selling 4,330,208 shares at an average price of $17.32 per share or a total of $75 million. The issue was sold under a previously announced ATM Equity OfferingSM Sales Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, and through a separate stock purchase agreement with an institutional investor.
“Following the completion of these sales of common stock, KCS has approximately 95,999,286 common shares outstanding. KCS currently has no plans to raise additional capital through the issuance of shares of its common stock,” the railroad said in a statement Monday.
KCS stock was up 4.5% in morning trading on the New York Stock Exchange.
“I am pleased that we were able to issue $75 million of our common stock at prevailing market prices without affecting the market price of our stock and in conditions where many established companies are struggling to raise capital,” commented Michael R. Haverty, KCS’s Chairman and Chief Executive Officer. “The additional capital, along with our previously announced reduced level of capital spending during the second half of 2009, should improve our liquidity. Additionally, we don’t have any major debt maturities due until April 2011.”