By Devika Patel
Knoxville, Tenn., Oct. 6 – Berkshire Hathaway Finance Corp. offered further details, including the price and yield, about a $2.5 billion sale of senior notes (Aa2/AA/A+) that priced in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $750 million offering of 1.45% notes due Oct. 15, 2030 priced at a spread of 70 basis points over Treasuries. These notes priced at 99.796 to yield 1.472%.
The notes were initially talked to print in the 95 bps over Treasuries area.
Berkshire Hathaway Finance sold $1.75 billion of 2.85% 30-year notes at a Treasuries plus 127 bps spread. These notes priced at 99.92 to yield 2.854%.
Initial price talk was in the 155 bps spread area.
BofA Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.
The notes are guaranteed by Berkshire Hathaway Inc.
Proceeds will be used to repay the company's $550 million of 2.9% notes due 2020 and for general corporate purposes.
Berkshire Hathaway Finance is an Omaha-based financing arm of Berkshire Hathaway.
| Issuer: | Berkshire Hathaway Finance Corp.
|
| Guarantor: | Berkshire Hathaway Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Trade date: | Oct. 5
|
| Settlement date: | Oct. 15
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 15, 2030
|
| Coupon: | 1.45%
|
| Price: | 99.796
|
| Yield: | 1.472%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until July 15, 2030, then a par call
|
| Price guidance: | Treasuries plus 95 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Oct. 15, 2050
|
| Coupon: | 2.85%
|
| Price: | 99.92
|
| Yield: | 2.854%
|
| Spread: | Treasuries plus 127 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until April 15, 2050, then a par call
|
| Price guidance: | Treasuries plus 155 bps area
|
|
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