Berkshire Hathaway Issues Senior Unsecured Notes
Berkshire Hathaway Finance Corp. (NYSE: BRKA) has announced that it has sold $1.5 billion worth of senior unsecured notes in the month of January so far. The offering is guaranteed by Berkshire Hathaway Inc., which is the parent company of Berkshire Hathaway Finance Corp. According to the Wall Street Journal, the offering included $375 million in three year notes with floating rate and $375 million worth of three year debt with fixed rate.
* The offering also included $750 million of 10 year bonds with fixed rate.
* Berkshire Hathaway Finance Corp. is the first investment grade company to issue bonds in 2011.
Mitch Stapley, chief fixed income officer with Fifth Third Asset Management told the Wall street Journal, “It flies in the face of consensus, but I think that the Fed on hold a while longer might be a little closer to the truth.” Berkshire Hathaway bonds are highly regarded since the company backs them up with solid performance and high credit rating. JPMorgan Chase, Wells Fargo and Goldman Sachs have as joint bookrunners for a future deal for retiring Berkshire Hathaway’s floating rate senior notes. Berkshire Hathaway was established in 1889. The company is based out of Omaha.
