EXHIBIT 99.2
Contact: KCSI
Landon H. Rowland (816) 983-1393 Kansas City Southern Industries, Inc.
Chairman, President and Chief Executive Officer 114 West 11th Street
Kansas City, Missouri 64105
Joseph D. Monello (816) 983-1213
Vice President & Chief Financial Officer
NYSE Symbol: KSU
Release No.: 1999-12: Date: December 20, 1999
NEWS RELEASE
KANSAS CITY SOUTHERN INDUSTRIES, INC.
ANNOUNCES SUCCESSFUL CONSENT SOLICITATION
Kansas City, Missouri
Kansas City Southern Industries, Inc. announces successful consent solicitation
for 7.875% Notes due July 1, 2002, 6.625% Notes due March 1, 2005, 8.8%
Debentures due July 1, 2022 and 7% Debentures due December 15, 2025.
Kansas City Southern Industries, Inc. ("KCSI" or the "Company", NYSE : KSU)
announced today that as of 5:00 p.m., New York City Time, on Friday, December
17, 1999, it had received tenders and the requisite consents from the holders of
more than a majority of the outstanding aggregate principal amount of each
series of its 7.875% Notes due July 1, 2002, its 6.625% Notes due March 1, 2005,
its 8.8% Debentures due July 1, 2002, and its 7% Debentures due December 15,
2025 (collectively, the "Debt Securities").
Accordingly, upon the terms and subject to the conditions set forth in the Offer
to Purchase and Consent Solicitation Statement dated December 6, 1999, the
Company and the indenture trustee have signed a supplemental indenture with
respect to each such series of Debt Securities that eliminates certain covenants
and waives certain other provisions of the indenture governing the Debt
Securities. The amendments implemented by each supplemental indenture will not
become operative until the Company accepts the applicable validly tendered Debt
Securities following the expiration of the offer to purchase the Debt Securities
at 9:00 a.m., New York City time, January 11, 2000, unless extended. The
consideration to be paid for Debt Securities tendered in the offer will be
calculated at 12:00 noon, New York City time, on January 7, 2000, unless the
expiration for the offer is extended.
Merrill Lynch & Co. is the exclusive Dealer Manager for the tender offer and the
exclusive Solicitation Agent for the consent solicitation. Questions or requests
for assistance may be directed to Merrill Lynch (telephone: 888-654-8637).
Requests for documentation may be directed to Beacon Hill Partners, Inc., the
Information Agent (telephone: 800-755-5001).
Kansas City Southern Industries, Inc. is a diversified holding company with
operations in the railroad transportation and financial services industries.
KCSI's wholly owned railroad transportation subsidiaries, Kansas City Southern
Railway and Gateway Western Railway, are held within Kansas
City Southern Lines, Inc. In addition, KCSI has an equity interest in
Transportacion Ferroviaria Mexicana, S.A. de C.V. and Mexrail, Inc. KCSI's
financial services subsidiary operations are held within Stilwell Financial,
Inc., including primarily: Janus Capital Corporation, Berger LLC and Nelson
Money Managers plc along with an equity interest in DST Systems, Inc.
KCSI expects to complete the spin-off of Stilwell from the Company promptly
following the payment for Debt Securities tendered and accepted by the Company
pursuant to the tender offers. KCSI is headquartered in Kansas City, Missouri.
In fiscal year 1998, the Company reported total revenues of $1.3 billion with
total assets of $2.6 billion.
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This news release includes statements concerning potential future events
involving the Company, which could materially differ from the events that
actually occur. The differences could be caused by a number of factors including
those factors identified in KCSI's December 31, 1998 Form 10-K and the Current
Report on Form 8-K/A dated June 3, 1997, each filed by the Company with the
Securities and Exchange Commission (Commission file no. 1-4717). The Company
will not update any forward-looking statements in this news release to reflect
future events or developments.