By Cristal Cody
Tupelo, Miss., March 5 – Berkshire Hathaway Finance Corp. priced $500 million of 1.85% 10-year senior notes (Aa2/AA) on Wednesday at a spread of 87.5 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was at the Treasuries plus 110 bps area.
The notes priced at 99.9 to yield 1.861%.
BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
The issue is guaranteed by parent company Berkshire Hathaway Inc.
Proceeds will be used to refinance the company’s $350 million of floating-rate notes due 2020 and for general corporate purposes, including to make additional term loans to Vanderbilt Mortgage and Finance Inc. and 21st Mortgage Corp.
The parent company also sold €1 billion of euro-denominated five-year notes on Wednesday.
Berkshire Hathaway Finance is an Omaha-based financing arm of Berkshire Hathaway.
| Issuer: | Berkshire Hathaway Finance Corp.
|
| Guarantor: | Berkshire Hathaway Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | March 12, 2030
|
| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Coupon: | 1.85%
|
| Price: | 99.9
|
| Yield: | 1.861%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call features: | Make-whole call before Dec. 12, 2029 at Treasuries plus 15 bps; thereafter at par
|
| Trade date: | March 4
|
| Settlement date: | March 12
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 110 bps area
|
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