Summary
This 8-K filing from Berkshire Hathaway Inc. (BRK-B), dated May 15, 2013, announces a significant debt issuance by its subsidiary, Berkshire Hathaway Finance Corporation (BHFC). BHFC successfully raised $1 billion by issuing two tranches of senior notes: $500 million in 1.300% Senior Notes due 2018 and $500 million in 4.300% Senior Notes due 2043. These notes are fully and unconditionally guaranteed by the parent company, Berkshire Hathaway Inc., providing strong credit backing for investors. The issuance was conducted under a previously filed Form S-3 registration statement and was facilitated by a group of prominent underwriters, including Goldman Sachs, Merrill Lynch, and Wells Fargo Securities. The proceeds from this offering will be used in accordance with the terms outlined in the respective underwriting agreements and indenture. This move indicates Berkshire Hathaway's proactive approach to managing its capital structure and potentially funding ongoing operations or strategic initiatives.
Key Highlights
- 1Berkshire Hathaway Finance Corporation (BHFC) issued $1 billion in aggregate principal amount of Senior Notes.
- 2The issuance comprises two tranches: $500 million of 1.300% Senior Notes due 2018 and $500 million of 4.300% Senior Notes due 2043.
- 3All notes are fully and unconditionally guaranteed by the parent company, Berkshire Hathaway Inc.
- 4The debt issuance was registered under a Form S-3 filed earlier with the SEC.
- 5The notes were sold to the public through an underwriting agreement with major financial institutions.
- 6This action reflects Berkshire Hathaway's ongoing debt financing activities to manage its capital.