By Cristal Cody
Tupelo, Miss., Aug. 7 – Berkshire Hathaway Finance Corp. priced $2.35 billion of 4.2% 30-year senior notes (Aa2/AA/) on Tuesday at a spread of 110 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.493 to yield 4.23%.
Goldman Sachs & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC were the bookrunners.
The notes will be guaranteed by parent company Berkshire Hathaway Inc.
Proceeds will be used to refinance a portion of the company’s $600 million of floating-rate senior notes due 2018 that matured and were repaid on Jan. 12, its $750 million of 1.45% senior notes due 2018 that matured and were repaid on March 7, its $1 billion of floating-rates senior notes due 2018 that matured and were repaid on March 7, its $1.25 billion of 5.4% senior notes due 2018 that matured and were repaid on May 15, its $500 million of 1.3% senior notes due 2018 that matured and were repaid on May 15 and its $500 million of 2% senior notes that mature on Aug. 15, 2018.
Berkshire Hathaway Finance is an Omaha-based financing arm of Berkshire Hathaway.
| Issuer: | Berkshire Hathaway Finance Corp.
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| Guarantor: | Berkshire Hathaway Inc.
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| Amount: | $2.35 billion
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| Description: | Senior notes
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| Maturity: | Aug. 15, 2048
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| Bookrunners: | Goldman Sachs & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities
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| Coupon: | 4.2%
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| Price: | 99.493
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| Yield: | 4.23%
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| Spread: | Treasuries plus 110 bps
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| Call features: | Make-whole call before Feb. 15, 2048 at Treasuries plus 20 bps; thereafter at par
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 15
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| Ratings: | Moody’s: Aa2
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| S&P: AA
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| Fitch: BBB+
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| Distribution: | SEC registered
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