By Cristal Cody
Tupelo, Miss., Oct. 28 – Berkshire Hathaway Energy Co. priced $2 billion of senior notes (A3/A-/BBB+) in two tranches on Tuesday, according to a market source.
A $500 million offering of 1.65% notes due May 15, 2031 priced with a Treasuries plus 90 basis points spread.
The notes priced on the tight side of guidance at the 95 bps area, plus or minus 5 bps.
A $1.5 billion tranche of 2.85% notes due May 15, 2051 was sold at a 128 bps over Treasuries spread.
The notes were guided to price at the 130 bps spread area, plus or minus 2 bps.
Berkshire Hathaway Energy dropped a tranche of notes due Jan. 15, 2025 that was initially talked at the Treasuries plus 65 bps area from the final offering.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC were the bookrunners.
Berkshire Hathaway Energy is a Des Moines-based holding company majority owned by Omaha-based Berkshire Hathaway Inc.
| Issuer: | Berkshire Hathaway Energy Co.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC
|
| Trade date: | Oct. 27
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: BBB+
|
|
|
| Notes due 2031
|
| Amount: | $500 million
|
| Maturity: | May 15, 2031
|
| Coupon: | 1.65%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 5 bps; initial talk at Treasuries plus 115 bps area
|
|
|
| Notes due 2051
|
| Amount: | $1.5 billion
|
| Maturity: | May 15, 2051
|
| Coupon: | 2.85%
|
| Spread: | Treasuries plus 128 bps
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 2 bps; initial talk at Treasuries plus 150 bps area
|
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