What is the purpose of this Form 8-K filing?

This Form 8-K filing is to report the issuance of new senior notes by Berkshire Hathaway Finance Corporation (BHFC), a subsidiary of Berkshire Hathaway Inc. It details the principal amounts, interest rates, and maturity dates of the notes, as well as the guarantee provided by the parent company.

How much debt did Berkshire Hathaway raise, and at what cost?

Berkshire Hathaway Finance Corporation raised a total of $950 million by issuing two tranches of senior notes: $400 million at a 0.950% interest rate due in 2016, and $550 million at a 2.900% interest rate due in 2020. These are very low interest rates, reflecting Berkshire's strong credit standing.

What does the guarantee by Berkshire Hathaway Inc. mean for investors?

The full and unconditional guarantee by Berkshire Hathaway Inc. means that the parent company is directly responsible for the payment of principal and interest on these notes. This significantly strengthens the credit quality of the debt, as it is backed by the financial strength and reputation of Berkshire Hathaway itself.

What are the potential uses for the proceeds from these notes?

The filing states the notes were issued under a general registration statement for corporate purposes. Typically, proceeds from such debt issuances by Berkshire Hathaway are used for general corporate needs, which can include funding acquisitions, refinancing existing debt, or supporting the capital requirements of its diverse operating businesses.

BRK-B/BRK-A 8-K SEC Disclosure

Summary

Berkshire Hathaway Inc. (BRK-B) filed a Form 8-K on October 15, 2013, to report a significant debt issuance by its subsidiary, Berkshire Hathaway Finance Corporation (BHFC). BHFC successfully issued $400 million in 0.950% Senior Notes due 2016 and $550 million in 2.900% Senior Notes due 2020, totaling $950 million in new debt. These notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc., providing investors with the credit strength of the parent company. The issuance was made under a previously filed registration statement and facilitated by a notable group of underwriters, including Goldman Sachs, J.P. Morgan, Merrill Lynch, and Wells Fargo Securities. This debt issuance indicates Berkshire Hathaway's strategy of leveraging its strong credit rating and financial resources to secure favorable borrowing terms. The proceeds from these notes will likely be used for general corporate purposes, potentially including acquisitions, debt refinancing, or supporting the operational needs of its diverse subsidiaries. Investors should note the attractive interest rates, reflecting Berkshire's robust financial health and market confidence in its long-term stability and management.

Key Highlights

1Berkshire Hathaway Finance Corporation (BHFC) issued $950 million in new senior notes.
2The issuance comprised $400 million of 0.950% Senior Notes due 2016 and $550 million of 2.900% Senior Notes due 2020.
3All notes are fully and unconditionally guaranteed by the parent company, Berkshire Hathaway Inc.
4The debt was issued under a Form S-3 registration statement filed earlier in 2013.
5A prominent group of underwriters, including Goldman Sachs, J.P. Morgan, Merrill Lynch, and Wells Fargo Securities, facilitated the offering.
6This issuance highlights Berkshire's access to capital markets at favorable interest rates, reflecting its strong creditworthiness.

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

Summary

Key Highlights

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