By Devika Patel
Knoxville, Tenn., Jan. 3 – Berkshire Hathaway Finance Corp. priced $1.25 billion of 4.25% 30-year senior notes (Aa2/AA) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 98.978 to yield 4.311% with a spread of Treasuries plus 140 bps.
The notes will be guaranteed by parent company Berkshire Hathaway Inc.
BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to refinance the company's $950 million of floating-rate senior notes due Jan. 11, 2019, to repay intercompany debt and for general corporate purposes.
Berkshire Hathaway Finance is an Omaha-based financing arm of Berkshire Hathaway.
| Issuer: | Berkshire Hathaway Finance Corp.
|
| Guarantor: | Berkshire Hathaway Inc.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2049
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Coupon: | 4.25%
|
| Price: | 98.978
|
| Yield: | 4.311%
|
| Spread: | Treasuries plus 140 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until July 15, 2048, then a par call
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Distribution: | SEC registered
|
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