By Andrea Heisinger
New York, Sept. 5 - Berkshire Hathaway Finance Corp. priced $750 million of senior notes (Aa2/AA+/A+) in three tranches of reopenings, a market source said.
A 1.6% note due 2017 was reopened to add $325 million. The notes were priced at 101.839 to yield 1.193% with a spread of 57 basis points over Treasuries. There is a make-whole call at 15 bps over Treasuries.
Total issuance is $1,075,000,000, including $750 million priced on May 8.
There was a retap of 3% notes due in 2022 to add $200 million. The notes were priced at 102.826 to yield 2.666% with a spread of Treasuries plus 107 bps. The tranche has a make-whole call at 20 bps over Treasuries.
Total issuance for the 10-year notes is $550 million, including $350 million sold May 8.
Finally, there was a reopening of 4.4% notes due 2042 to add $225 million. The new bonds priced at 104.992 to yield 4.111% with a 142 bps over Treasuries spread. There is a make-whole call at 25 bps over Treasuries.
Total issuance is $725 million, including $500 million priced May 8.
Goldman Sachs & Co. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem 5.125% senior notes due in 2012.
The notes are guaranteed by Berkshire Hathaway Inc.
The holding company for various subsidiaries is based in Omaha.
| Issuer: | Berkshire Hathaway Finance Corp.
|
| Guarantor: | Berkshire Hathaway Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA+
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $325 million, reopened
|
| Maturity: | March 15, 2017
|
| Coupon: | 1.6%
|
| Price: | 101.839
|
| Yield: | 1.193%
|
| Spread: | Treasuries plus 57 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Total issuance: | $1,075,000,000, including $750 million priced May 8
|
|
|
| 10-year notes
|
| Amount: | $200 million, reopened
|
| Maturity: | March 15, 2022
|
| Coupon: | 3%
|
| Price: | 102.826
|
| Yield: | 2.666%
|
| Spread: | Treasuries plus 107 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Total issuance: | $550 million, including $350 million sold May 8
|
|
|
| 30-year bonds
|
| Amount: | $225 million
|
| Maturity: | May 15, 2042
|
| Coupon: | 4.4%
|
| Price: | 104.992
|
| Yield: | 4.111%
|
| Spread: | Treasuries plus 142 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Total issuance: | $725 million, including $500 million priced May 8
|
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