Summary
This filing reports on Berkshire Hathaway Finance Corporation's (BHFC) issuance of $1 billion in senior notes, split between $600 million of 0.950% Senior Notes due 2016 and $400 million of 2.000% Senior Notes due 2018. These notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc. The issuance was made under a previously filed registration statement and an underwriting agreement with several prominent financial institutions. This debt issuance likely serves to provide BHFC with additional liquidity for its operations or to fund future investments, bolstering Berkshire Hathaway's financial flexibility. Investors should note the specific interest rates and maturity dates for these notes. The lower interest rate on the 2016 notes reflects their shorter term and prevailing market conditions at the time of issuance. The guarantee from the parent company, Berkshire Hathaway Inc., signifies the creditworthiness of the overall entity behind these debt instruments. This action is a standard corporate finance activity, demonstrating BHFC's access to capital markets and Berkshire's continued strong financial position.
Key Highlights
- 1Berkshire Hathaway Finance Corporation (BHFC) issued $1 billion in senior notes.
- 2The issuance consists of $600 million of 0.950% Senior Notes due 2016.
- 3The issuance also includes $400 million of 2.000% Senior Notes due 2018.
- 4All notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc.
- 5The debt was issued under a previously filed Form S-3 registration statement.
- 6The issuance occurred on August 15, 2013.