Summary
Berkshire Hathaway Inc. (BRK-B) filed a Form 8-K on January 12, 2017, to report on the issuance of debt by its subsidiary, Berkshire Hathaway Finance Corporation (BHFC). BHFC issued a total of $1.3 billion in Floating Rate Senior Notes, split into two tranches: $950 million due January 2019 and $350 million due 2020. These notes are fully and unconditionally guaranteed by Berkshire Hathaway Inc. This issuance was conducted under a previously filed registration statement and involved a syndicate of well-known underwriters, including Goldman Sachs, J.P. Morgan, Merrill Lynch, and Wells Fargo. The issuance of these notes represents a strategic move to raise capital, likely to support Berkshire Hathaway's ongoing operations, investment activities, or potential acquisitions. Investors should note the floating rate nature of these notes, meaning their interest payments will adjust with prevailing market rates.
Key Highlights
- 1Berkshire Hathaway Finance Corporation (BHFC) issued $1.3 billion in Floating Rate Senior Notes.
- 2The issuance comprises two tranches: $950 million due January 2019 and $350 million due January 2020.
- 3Berkshire Hathaway Inc. provides a full and unconditional guarantee for all issued notes.
- 4The notes were issued under a registration statement previously filed with the SEC.
- 5A syndicate of prominent financial institutions acted as underwriters for the offering.
- 6The interest rate on the notes is variable (floating rate), tied to market interest rates.