Summary
Berkshire Hathaway Inc. (BRK-B) filed an 8-K on August 15, 2016, to report on the issuance of new senior notes. The company and its subsidiary, Berkshire Hathaway Finance Corporation (BHFC), collectively issued $1.75 billion in aggregate principal amount of notes across several tranches. This move indicates proactive capital management and potentially a strategy to secure favorable long-term financing rates. Investors should note the details of these new debt instruments, including their maturity dates and interest rates, as they impact the company's leverage and future interest expenses.
Key Highlights
- 1Berkshire Hathaway Inc. issued $500 million in 1.150% Senior Notes due 2018 and $250 million in Floating Rate Senior Notes due 2018.
- 2Berkshire Hathaway Finance Corporation (BHFC) issued $1 billion in 1.300% Senior Notes due 2019 and $250 million in Floating Rate Senior Notes due August 2019.
- 3The total aggregate principal amount of notes issued by Berkshire and BHFC is $1.75 billion.
- 4The notes were issued under a registration statement filed earlier in 2016.
- 5The BHFC Notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc.
- 6The issuance involved major underwriters including Goldman, Sachs & Co., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities, LLC.
- 7The filing incorporates by reference relevant indenture documents and officers' certificates detailing the terms of the notes.