8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Feb 11, 2013)

Filed February 11, 2013For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) filed an 8-K on February 11, 2013, to report on the issuance of a significant amount of senior notes. The company successfully raised a total of $2.6 billion across four different tranches of notes with varying maturity dates and interest rates, ranging from 0.800% due in 2016 to 4.500% due in 2043. This action indicates Berkshire's strategy to secure long-term funding and manage its capital structure, likely to support ongoing operations, potential acquisitions, or other strategic initiatives. Investors should note the diversification of debt maturities and the relatively low coupon rates, reflecting Berkshire's strong credit standing and favorable market conditions at the time of issuance. The filing details the underwriting agreement with major financial institutions and references the registration statement and indenture governing these new debt instruments. This event is a standard disclosure of a material financing activity for a company of Berkshire Hathaway's scale.

Key Highlights

  • 1Berkshire Hathaway Inc. issued a total of $2.6 billion in senior notes on February 11, 2013.
  • 2The issuance comprised four series of notes: $300M of 0.800% due 2016, $800M of 1.550% due 2018, $500M of 3.000% due 2023, and $1B of 4.500% due 2043.
  • 3The notes were issued under a registration statement filed on Form S-3, indicating a public offering.
  • 4Goldman, Sachs & Co. and Wells Fargo Securities, LLC acted as underwriters for the offering.
  • 5The debt issuance was governed by an Indenture dated February 1, 2010, and an Officers' Certificate dated February 11, 2013.
  • 6This filing serves as an "Other Events" disclosure (Item 8.01) under the Form 8-K.
  • 7The company's Senior Vice President and Chief Financial Officer, Marc D. Hamburg, signed the report.

Frequently Asked Questions

This 8-K filing is to formally report the completion of a significant debt issuance. Berkshire Hathaway successfully sold $2.6 billion in senior notes to the public, detailing the various tranches, interest rates, and maturity dates.

The specific reasons for the debt issuance are not detailed in this 8-K, but it is common for companies to issue debt to fund operations, make acquisitions, refinance existing debt, or for general corporate purposes. Given Berkshire's size and diversified operations, this could be for any of these strategic reasons.

The relatively low interest rates (coupon rates) attached to these notes, especially for the longer-term maturities, suggest that Berkshire Hathaway possessed a strong credit rating at the time, allowing it to borrow funds at favorable terms. This indicates financial strength and market confidence in the company.

The 8-K filing itself does not explicitly state whether the notes are callable. Further details regarding call provisions would typically be found in the "Description of the Notes" section of the prospectus supplement or within the Indenture and Officers' Certificate referenced in the filing.