Berkshire Sells $1 Billion of Bonds in First Offering Since May

Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) issued its first bonds in three months with a $1 billion, two-part offering.

Berkshire’s $600 million of 0.95 percent, three-year securities priced to yield 37 basis points more than similar-maturity Treasuries and $400 million of 2 percent, five-year notes pay a relative yield of 65 basis points, according to data compiled by Bloomberg. The bonds are expected to be rated Aa2 by Moody’s Investors Service and will be used to repay debt.

The company has about $19 billion in corporate bonds maturing by 2043, Bloomberg data show.

Berkshire last sold debt in May, issuing $1 billion in two parts including $500 million of 1.3 percent debentures due May 2018 paying a spread of 57 basis points, Bloomberg data show. The bonds traded yesterday at 97.93 cents on the dollar to yield 1.76 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Bank of America Corp., Goldman Sachs Group Inc. and Wells Fargo & Co. managed the offering for the Omaha, Nebraska-based company, Bloomberg data show.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

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

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