By Aleesia Forni
Virginia Beach, Aug. 7 – Berkshire Hathaway Inc. sold $1.15 billion of senior notes (Aa2/AA/) in two parts on Thursday, according to an informed source and two separate FWP filings with the Securities and Exchange Commission.
A $400 million tranche of three-year floaters, issued by Berkshire Hathaway Finance Corp., sold at par to yield Libor plus 12.5 basis points.
Berkshire Hathaway Inc. issued $750 million of 2.1% five-year notes at Treasuries plus 50 bps.
Pricing was at 99.991 to yield 2.102%.
BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to repay the company’s $750 million of senior notes due Aug. 15, 2014. Any remaining proceeds will be used for general corporate purposes.
Berkshire Hathaway Inc. is an Omaha-based holding company for various subsidiaries.
| Issue: | Senior notes
|
| Amount: | $1.15 billion
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| Joint bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Trade date: | Aug. 7
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| Settlement date: | Aug. 14
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| Ratings: | Moody’s: Aa2
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| Standard & Poor’s: AA
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| Distribution: | SEC-registered
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|
|
| Three-year floaters
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| Issuer: | Berkshire Hathaway Finance Corp.
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| Guarantor: | Berkshire Hathaway Inc.
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| Amount: | $400 million
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| Maturity: | Aug. 14, 2017
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| Coupon: | Libor plus 12.5 bps
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| Price: | Par
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| Yield: | Libor plus 12.5 bps
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| Price talk: | Libor plus 20 bps area
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|
| Five-year notes
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| Issuer: | Berkshire Hathaway Inc.
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| Amount: | $750 million
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| Maturity: | Aug. 14, 2019
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| Coupon: | 2.1%
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| Price: | 99.991
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| Yield: | 2.102%
|
| Spread: | Treasuries plus 50 bps
|
| Price talk: | Treasuries plus 55 bps to 60 bps
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