Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Buffett’s Berkshire Issues $1.7 Billion Bonds To Refinance Its Debt

BERKSHIRE HATHAWAYWarren Buffett’s Berkshire Hathaway Inc. is preparing to issue $1.7 billion bonds to help refinance the debt that used to acquire Burlington Northern Santa Fe. The railroad company was bought by Berkshire for $26.5 billion in 2010.

According to Bloomberg, those $1.7 billion bonds are composed of $1.1 billion of five-year notes and $600 million of 10-year debentures. Those proceeds may be used to refinance another $1.7 billion of bonds that will mature in February.

Buffett’s $1.1 billion five-year notes pays 100 basis points more than similar-maturity Treasuries, and the 10-year debt offers a spread of 137.5 basis points, based on Bloomberg. The offering will be managed by Bank of America and Goldman Sachs.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.