Chicago, March 8 – Berkshire Hathaway Inc. sold $4.5 billion of notes in three parts (Aa2/AA) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The notes are being issued via Berkshire Hathaway Finance Corp. and guaranteed by Berkshire Hathaway.
The deal included $750 million of 2.3% five-year notes, priced at 99.981 to yield 2.304%, or 60 basis points above the benchmark Treasury.
The middle tranche is for $1 billion of 2.875% 10-year notes that priced at 99.965 to yield 1.779%. Pricing on the spread arrived at 110 bps over Treasuries.
A 30-year tranche priced out as $2.75 billion of 3.85% notes, which were discounted to 99.647 to yield 3.87%. The spread 165 bps over Treasuries.
All of the notes are optionally redeemable by the company starting Sept. 15, 2022 with make-whole premiums. The notes are redeemable at Treasuries plus 10 bps for the five-year notes, Treasuries plus 20 bps for the 10-year notes and Treasuries plus 25 bps for the 30-year notes. All three have par calls a number of months before their respective maturity dates.
BofA Securities, Inc. and J.P. Morgan Securities LLC. are the joint bookrunners.
Proceeds will be used for general corporate purposes, including to make additional term loans to Vanderbilt and 21st Mortgage.
The conglomerate holding company is based in Omaha.
| Issuer: | Berkshire Hathaway Inc.
|
| Guarantor: | Berkshire Hathaway Finance Corp.
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| Amount: | $4.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc. and J.P. Morgan Securities LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Munger, Tolles & Olson LLP
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| Counsel to bookrunners: | Simpson Thacher & Bartlett LLP
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| Trade date: | March 7
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| Settlement date: | March 15
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| Ratings: | Moody’s: Aa2
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| S&P: AA
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $750 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 2.3%
|
| Price: | 99.981
|
| Yield: | 2.304%
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps starting Sept. 15, 2022; par call starting Feb. 15, 2027
|
| Cusip: | 084664CZ2
|
|
|
| 10-year notes
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| Amount: | $1 billion
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| Maturity: | March 15, 2032
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| Coupon: | 2.875%
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| Price: | 99.965
|
| Yield: | 2.879%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps starting Sept. 15, 2022; par call starting Dec. 15, 2031
|
| Cusip: | 084664DA6
|
|
|
| 30-year notes
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| Amount: | $2.75 billion
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| Maturity: | March 15, 2052
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| Coupon: | 3.85%
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| Price: | 99.647
|
| Yield: | 3.87%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps starting Sept. 15, 2022; par call starting Sept. 15, 2051
|
| Cusip: | 084664DB4
|
|
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