By Andrea Heisinger
New York, May 8 - Berkshire Hathaway Finance Corp. priced $1 billion of senior notes (Aa2/AA+/A+) in two tranches on Wednesday, an informed source said.
A $500 million tranche of 1.3% five-year notes sold at 99.942 to yield 1.312% with a spread of Treasuries plus 57 basis points.
There is a make-whole call at Treasuries plus 10 bps.
There was also $500 million of 4.3% 30-year bonds priced at 99.183 to yield 4.349% with a spread of 135 bps over Treasuries.
There is a make-whole call at Treasuries plus 25 bps.
Bookrunners were BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC.
Proceeds will be used to redeem $1 billion of 4.6% senior notes due 2013 at par plus accrued and unpaid interest.
The notes are guaranteed by Berkshire Hathaway Inc.
Berkshire was last in the U.S. bond market with a $2.6 billion sale in four tranches on Jan. 29.
The holding company for subsidiaries is based in Omaha.
| Issuer: | Berkshire Hathaway Finance Corp.
|
| Guarantor: | Berkshire Hathaway Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Trade date: | May 8
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA+
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2018
|
| Coupon: | 1.3%
|
| Price: | 99.942
|
| Yield: | 1.312%
|
| Spread: | Treasuries plus 57 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | May 15, 2043
|
| Coupon: | 4.3%
|
| Price: | 99.183
|
| Yield: | 4.349%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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