Summary
Berkshire Hathaway Inc. (BRK-B) filed an 8-K on January 15, 2013, to report on the issuance of new debt by its subsidiary, Berkshire Hathaway Finance Corporation (BHFC). BHFC issued a total of $500 million in senior notes, comprising $275 million of 1.600% Senior Notes due 2017 and $225 million of 3.000% Senior Notes due 2022. These notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc. itself, providing a strong layer of credit support for investors. This debt issuance was conducted under an existing shelf registration statement and was facilitated through an underwriting agreement with major financial institutions. The proceeds from these notes are intended to bolster BHFC's capital structure. For investors, this filing signifies Berkshire Hathaway's ongoing access to debt markets at favorable rates, reflecting its robust financial standing and creditworthiness. The guaranteed nature of the debt is a key takeaway for bondholders.
Key Highlights
- 1Berkshire Hathaway Finance Corporation (BHFC) issued $500 million in aggregate principal amount of senior notes.
- 2The issuance consists of $275 million of 1.600% Senior Notes due 2017.
- 3The issuance also includes $225 million of 3.000% Senior Notes due 2022.
- 4Both series of notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc.
- 5The debt was issued under an existing registration statement (Form S-3) filed on February 1, 2010.
- 6The issuance was facilitated by an underwriting agreement with prominent investment banks including Goldman, Sachs & Co., Merrill Lynch, and Wells Fargo Securities.
- 7The filing includes an opinion from Munger, Tolles & Olson LLP regarding the legality of the issuance.