Summary
Berkshire Hathaway Inc. (BRK-B) filed an 8-K on December 15, 2010, to report a significant debt issuance by its subsidiary, Berkshire Hathaway Finance Corporation (BHFC). BHFC successfully issued $500 million in aggregate principal amount of 2.45% Senior Notes due in 2015. These notes are fully and unconditionally guaranteed by the parent company, Berkshire Hathaway Inc., providing investors with the credit strength of the consolidated entity. This issuance was conducted under an existing Form S-3 registration statement and an underwriting agreement with Goldman, Sachs & Co. The low coupon rate of 2.45% suggests favorable market conditions and Berkshire's strong creditworthiness at the time. The proceeds from these notes will likely be used to fund general corporate purposes or support the company's ongoing investment activities.
Key Highlights
- 1Berkshire Hathaway Finance Corporation (BHFC) issued $500 million in Senior Notes due 2015.
- 2The notes carry a coupon rate of 2.45%.
- 3Berkshire Hathaway Inc. provides a full and unconditional guarantee for the issued notes.
- 4The issuance was made under a previously filed Form S-3 registration statement.
- 5Goldman, Sachs & Co. acted as the underwriter for this debt offering.
- 6The filing provides details on the Indenture and Officers' Certificate related to the notes.
- 7The CFO, Marc D. Hamburg, signed the report, indicating executive oversight of the transaction.