8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Dec 15, 2010)

Filed December 15, 2010For Securities:BRK-BBRK-A

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.

Frequently Asked Questions

This 8-K filing reports on the issuance of $500 million in Senior Notes by Berkshire Hathaway Finance Corporation (BHFC), a subsidiary of Berkshire Hathaway Inc., on December 15, 2010. It also details the terms of the notes and the guarantee provided by the parent company.

While the notes were issued by Berkshire Hathaway Finance Corporation, they are fully and unconditionally guaranteed by Berkshire Hathaway Inc. This means Berkshire Hathaway Inc. is directly responsible for the repayment of the principal and interest on these notes.

The Senior Notes due 2015 issued by BHFC have a fixed interest rate of 2.45% per annum.

The filing doesn't specify the exact use of proceeds, but typically, funds raised from such debt issuances by Berkshire Hathaway subsidiaries are used for general corporate purposes, including funding investments, acquisitions, or working capital needs.