By Andrea Heisinger
New York, Jan. 3 - Berkshire Hathaway Finance Corp. sold $1.5 billion of senior notes (Aa2/AA+/A+) in a reallocated three tranches on Monday, a market source close to the deal said.
There was a $375 million tranche of three-year floating-rate notes priced at par to yield three-month Libor plus 33 basis points. This was within price guidance of Libor plus 30 bps to 35 bps.
A $375 million tranche of 1.5% three-year fixed-rate notes priced at 99.732 to yield 1.592% with a spread of 58 bps over Treasuries. This was at the tight end of price talk in the 60 bps area, a source said.
The three-year fixed-rate notes have a make-whole call at 10 bps over Treasuries.
The final part of the sale was $750 million of 4.25% 10-year notes sold at 99.645 to yield 4.294% with a spread of Treasuries plus 95 bps. This tranche also came in at the tight end of guidance in the 100 bps area.
The 10-year notes have a make-whole call at 15 bps over Treasuries.
Bookrunners were Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds are being used to satisfy and retire existing debt.
The notes are guaranteed by Berkshire Hathaway Inc.
The holding company for financial, insurance and transportation subsidiaries is based in Omaha.
| Issuer: | Berkshire Hathaway Finance Corp.
|
| Guarantor: | Berkshire Hathaway Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA+
|
| Fitch: A+
|
|
|
| Three-year floaters
|
| Amount: | $375 million
|
| Maturity: | Jan. 10, 2014
|
| Coupon: | Three-month Libor plus 33 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 33 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 30 bps to 35 bps
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $375 million
|
| Maturity: | Jan. 10, 2014
|
| Coupon: | 1.5%
|
| Price: | 99.732
|
| Yield: | 1.592%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 60 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2021
|
| Coupon: | 4.25%
|
| Price: | 99.645
|
| Yield: | 4.294%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
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