Summary
Berkshire Hathaway Inc. (BRK-B) announced on January 11, 2011, through its subsidiary Berkshire Hathaway Finance Corporation (BHFC), the issuance of a significant debt offering totaling $1.5 billion. This offering comprises $750 million of 4.250% Senior Notes due 2021, $375 million of 1.500% Senior Notes due 2014, and $375 million of Floating Rate Senior Notes due 2014. These notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc., indicating the parent company's direct financial commitment. The issuance was conducted under a previously filed registration statement and involves major underwriters such as Goldman, Sachs & Co., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC. This move signals Berkshire's strategy to secure long-term financing, potentially for acquisitions, investments, or to strengthen its overall liquidity position during a period of economic uncertainty.
Key Highlights
- 1BHFC issued $1.5 billion in aggregate principal amount of Senior Notes.
- 2The notes consist of fixed-rate ($1.125 billion) and floating-rate ($375 million) tranches.
- 3The fixed-rate notes have coupon rates of 4.250% (due 2021) and 1.500% (due 2014).
- 4Berkshire Hathaway Inc. provides a full and unconditional guarantee for all issued notes.
- 5The offering was made under a Form S-3 registration statement filed previously with the SEC.
- 6Key financial institutions acted as underwriters, including Goldman Sachs, J.P. Morgan, and Wells Fargo Securities.