DST Systems, Inc. Announces Offering of $700 million of Convertible Senior DebenturesAugust 5, 2003 KANSAS CITY, MO (August 5, 2003) - DST Systems, Inc. (“DST” or the “Company”) (NYSE: DST) today announced its intention, subject to market and other conditions, to raise $700 million through a private placement of convertible senior debentures due 2023. DST will grant to the initial purchasers of the convertible debentures an option to purchase up to an additional $140 million of the debentures. The debentures will be issued in two series. The convertible debentures will be senior unsecured obligations of DST and will be convertible into DST common stock under certain conditions at a conversion rate representing a premium to the current market price. It is expected that the convertible debentures will bear interest at a rate to be determined, payable in the form of cash and after a specified period, accretion of the principal amount payable at maturity. The convertible debentures will also pay contingent interest under certain circumstances. The conversion rate, interest and accretion rate and other terms will be provided upon the pricing of the convertible debentures. The debentures and common stock issuable upon conversion have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act. Unless so registered, the debentures and common stock issued upon conversion of the debentures may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security. Any offer of the securities will be made only by means of a private offering memorandum. * * * *
The information and comments above may include forward-looking statements
respecting DST and its businesses. Such information and comments are based
on DST’s views as of today, and actual results could differ. There
could be a number of factors affecting future results, including those
set forth in Form 8-K/A dated March 17, 2003 filed by DST with the Securities
and Exchange Commission. All such factors should be considered in evaluating
any forward-looking comment. The Company will not update any forward-looking
statements in this press release to reflect future events.
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