8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Jan 31, 2012)

Filed January 31, 2012For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) filed an 8-K report on January 31, 2012, to disclose the issuance of new debt. Specifically, the company announced the sale of $1.1 billion in 1.90% Senior Notes due 2017 and $600 million in 3.40% Senior Notes due 2022. This issuance was conducted under an existing shelf registration statement and an underwriting agreement with Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated. The primary purpose of this filing is to inform investors about this significant debt financing activity, providing transparency on the terms and execution of these new notes.

Key Highlights

  • 1Berkshire Hathaway Inc. issued $1.1 billion of 1.90% Senior Notes due 2017.
  • 2Berkshire Hathaway Inc. issued $600 million of 3.40% Senior Notes due 2022.
  • 3The total aggregate principal amount of new debt issued is $1.7 billion.
  • 4The notes were issued under a shelf registration statement previously filed with the SEC.
  • 5The issuance was facilitated through an underwriting agreement with Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
  • 6The filing details the relevant exhibits, including the underwriting agreement and forms of the notes.

Frequently Asked Questions

Berkshire Hathaway issued a total of $1.7 billion in new debt, consisting of $1.1 billion in 1.90% Senior Notes due 2017 and $600 million in 3.40% Senior Notes due 2022.

While the 8-K filing does not explicitly state the purpose, such debt issuances are typically used for general corporate purposes, which could include funding acquisitions, investing in existing businesses, or strengthening liquidity.

The notes were issued with specific coupon rates and maturity dates: 1.90% for the notes maturing in 2017 and 3.40% for the notes maturing in 2022. They were issued under an existing Indenture dated February 1, 2010.

This issuance increases Berkshire Hathaway's total debt. However, given Berkshire's strong financial position, significant cash flows, and vast investment portfolio, this debt financing is likely manageable and could be part of a strategic capital allocation plan.