Burlington Northern Raises $1.5 Billion With 10-, 30-Year Bonds

Burlington Northern Santa Fe sold $1.5 billion of bonds in its first offering for more than six months.

The railroad that Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) bought in 2010 issued $700 million of 3 percent, 10-year notes to yield 110 basis points more than similar-maturity Treasuries and $800 million of 4.45 percent, 30-year bonds at 133 basis points more than benchmarks, according to data compiled by Bloomberg. The Fort Worth, Texas-based transport company’s bonds may be rated A3 by Moody’s Investors Service.

Burlington Northern last sold bonds in August. Its $600 million of 3.05 percent securities due September 2022 traded at 102.2 cents on the dollar for a yield of 2.78 percent yesterday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo & Co. managed the sale, Bloomberg data show. A basis point is 0.01 percentage point.

To contact the reporter on this story: Madhura Karnik in New York at mkarnik@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net