Berkshire Hathaway talks $1 billion two-part senior notes offering; pricing expected Tuesday

By Aleesia Forni

Virginia Beach, Jan. 13 – Berkshire Hathaway Finance Corp. plans to bring to market a $1 billion offering of senior notes (A2/AA/) in two tranches, according to an informed source and a 424B2 filing with the Securities and Exchange Commission.

The company is planning a tranche of two-year floaters talked in the Libor plus 25 basis points area.

There is also a tranche of three-year notes talked at Treasuries plus 35 bps to 40 bps.

BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to repay the company’s $1 billion of 4.5% senior notes due January 2015. Any remaining proceeds will be used for general corporate purposes.

The notes will be guaranteed by Berkshire Hathaway Inc., the Omaha-based holding company for subsidiaries.

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