Berkshire Hathaway plans to sell $1.5 billion of senior debt to retire floating-rate notes maturing this month.
Berkshire Hathaway Finance may issue fixed- and floating-rate three-year notes and fixed-rate 10-year debt as soon as Monday, according to a person familiar with the transaction.
The three-year floating-rate debt may pay about 35 basis points more than the three-month London interbank offered rate, and the three-year fixed-rate notes may pay about 60 basis points more than similar-maturity Treasuries, said the person, who declined to be identified because terms aren't set. The 10-year notes may pay a spread of 95 basis points to 100 basis points, the person said.
Three-month Libor, a lending benchmark, was set at 0.303 percent Monday.
Goldman Sachs Group, J.P. Morgan Chase and Wells Fargo are managing the bond sale, the company said in a regulatory filing Monday that didn't include the size or timing of the bond sale.
Berkshire Hathaway Finance, a funding arm of the company billionaire investor Warren Buffett created in 2003, has $1.5 billion of floating-rate notes maturing on Jan. 11, according to data compiled by Bloomberg. The securities were originally issued in January 2008, according to a separate regulatory filing. Berkshire Hathaway Finance has $11.5 billion of outstanding debt as of Sept. 30, according to Monday's filing.
