Summary
Berkshire Hathaway Inc. (BRK-B) announced on November 29, 2023, the issuance of substantial aggregate principal amounts of senior notes denominated in Japanese Yen (¥). These notes, issued under a previously filed Form S-3 registration statement, comprise five tranches with maturities ranging from 2026 to 2058 and coupon rates varying from 0.955% to 2.502%. The issuance was facilitated by an underwriting agreement with Merrill Lynch International and Mizuho Securities USA LLC and is governed by an indenture dated January 28, 2022. This debt issuance represents a strategic move by Berkshire Hathaway to access capital markets, likely to fund ongoing operations, potential acquisitions, or to refinance existing debt. Investors should note the diversification of currency exposure, with a significant Yen-denominated offering, and the long-term nature of some of these debt instruments. The filing details the specific terms and conditions of each note series, providing transparency on Berkshire Hathaway's financing activities.
Key Highlights
- 1Berkshire Hathaway issued ¥122 billion (approximately $820 million USD, based on Nov 2023 exchange rates) in aggregate principal amount of Yen-denominated senior notes.
- 2The notes are structured into five tranches with maturities in 2026, 2028, 2033, 2043, and 2058.
- 3Coupon rates on the notes range from a low of 0.955% for the 2026 notes to a high of 2.502% for the 2058 notes.
- 4The issuance was conducted under a Form S-3 registration statement filed earlier with the SEC.
- 5Underwriting services were provided by Merrill Lynch International and Mizuho Securities USA LLC.
- 6The debt is governed by an Indenture dated January 28, 2022, with The Bank of New York Mellon Trust Company, N.A. acting as trustee.