8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Aug 15, 2013)

Filed August 15, 2013For Securities:BRK-BBRK-A

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.

Frequently Asked Questions

While the filing does not explicitly state the purpose, such debt issuances by finance subsidiaries like BHFC are typically used to raise capital for general corporate purposes, to fund ongoing operations, or to support future investment activities and acquisitions, thereby enhancing Berkshire Hathaway's financial flexibility.

The full and unconditional guarantee from Berkshire Hathaway Inc. means that Berkshire Hathaway Inc. is directly responsible for the payment of principal and interest on these notes if BHFC is unable to do so. This significantly enhances the credit quality and security of the notes for investors.

Berkshire Hathaway Finance Corporation issued $600 million in 0.950% Senior Notes due 2016 and $400 million in 2.000% Senior Notes due 2018. These terms are detailed in the Indenture and Officers' Certificates referenced in the filing.

More detailed information can be found by referencing the "Description of the Notes and Guarantee" in the prospectus supplement dated August 6, 2013, and the "Description of the Debt Securities" in the base prospectus dated January 28, 2013, both filed with the SEC. The Indenture and Officers' Certificates are also available as exhibits to this 8-K filing.