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.