8-KOther Events

BERKSHIRE HATHAWAY INC 8-K Report (Oct 8, 2003)

Filed October 8, 2003For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) filed an 8-K on October 7, 2003, reporting on the issuance of $1.5 billion in senior notes by its wholly-owned finance subsidiary, Berkshire Hathaway Finance Corporation (BHFC). This issuance comprised $750 million in 3.375% Senior Notes due 2008 and $750 million in 4.625% Senior Notes due 2013. Berkshire Hathaway Inc. itself provided guarantees for these notes. The transaction was conducted as a private placement, meaning it was not subject to the registration requirements of the Securities Act of 1933. The filing includes exhibits detailing the indenture, an exchange and registration rights agreement with Goldman, Sachs & Co., and specimen debt securities for both note issuances. This move indicates Berkshire's strategy to raise substantial capital through debt financing for its operations or acquisitions.

Key Highlights

  • 1Berkshire Hathaway Finance Corporation (BHFC) issued $1.5 billion in senior notes.
  • 2The issuance was split into two tranches: $750 million of 3.375% Senior Notes due 2008 and $750 million of 4.625% Senior Notes due 2013.
  • 3Berkshire Hathaway Inc. provided guarantees for the BHFC notes, strengthening their creditworthiness.
  • 4The notes were issued in a private transaction, not registered under the Securities Act of 1933.
  • 5Goldman, Sachs & Co. was involved in the Exchange and Registration Rights Agreement.
  • 6The filing includes detailed documentation such as the Indenture and specimen debt securities.
  • 7This action signifies Berkshire's proactive approach to capital raising via debt instruments.

Frequently Asked Questions

Berkshire Hathaway Finance Corporation issued a total of $1.5 billion in senior notes, divided into two equal tranches of $750 million each.

The notes carry interest rates of 3.375% and mature in 2008, while the other tranche has an interest rate of 4.625% and matures in 2013.

The issuance was structured as a private transaction to comply with securities regulations, as it was not intended to be publicly registered under the Securities Act of 1933.

Berkshire Hathaway Inc.'s guarantee significantly enhances the credit quality and investor confidence in the BHFC notes, as it signifies the parent company's direct obligation and financial backing.