This page has been archived and commenting is disabled.

Berkshire Prices 6-Part, $8 Billion Deal

Tyler Durden's picture





 

JPMorgan, as lead underwriter, just priced the $8 billion Berkshire 4-part bond offering, which ended up being a 6-part deal. Terms were as follows.

Amount:          $2 billion
Maturity:          Feb. 10, 2011
Coupon:           3-month Libor plus 2 basis points
Price:               Par
Yield:                3-month Libor plus 2 basis points
Settlement:     Feb. 11, 2010
Ratings:           Aa2 (Moody's Investors Service)
                       AA+ (Standard & Poor's)

Amount:         $1.1 billion
Maturity:         Feb. 10, 2012
Coupon:         3-month Libor plus 18 basis points
Price:              Par
Yield:              3-month Libor plus 18 basis points
Settlement:    Feb. 11, 2010
Ratings:          Aa2 (Moody's Investors Service)
                      AA+ (Standard & Poor's)

Amount:         $600 million
Maturity:         Feb. 10, 2012
Coupon:         1.40%
Price:              99.935
Yield:              1.433%
Spread:          63 basis points over Treasurys
Settlement:     Feb. 11, 2010
Ratings:          Aa2 (Moody's Investors Service)
                      AA+ (Standard & Poor's)

Amount:         $1.2 billion
Maturity:         Feb. 11, 2013
Coupon:         3-month Libor plus 43 basis points
Price:              Par
Yield:              3-month Libor plus 43 basis points
Settlement:    Feb. 11, 2010
Ratings:          Aa2 (Moody's Investors Service)
                      AA+ (Standard & Poor's)

Amount:         $1.4 billion
Maturity:        Feb. 11, 2013
Coupon:         2.125%
Price:              99.965
Yield:              2.137%
Spread:          83 basis points over Treasurys
Settlement:    Feb. 11, 2010
Ratings:          Aa2 (Moody's Investors Service)
                      AA+ (Standard & Poor's)

Amount:        $1.7 billion
Maturity:        Feb. 11, 2015
Coupon:        3.20%
Price:             99.917
Yield:             3.218%
Spread:         93 basis points over Treasurys
Settlement:   Feb. 11, 2010
Ratings:         Aa2 (Moody's Investors Service)
                     AA+ (Standard & Poor's)

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 02/04/2010 - 18:51 | Link to Comment mynhair
mynhair's picture

No, thanks.  Think I'll pass.

Thu, 02/04/2010 - 19:00 | Link to Comment E pluribus unum
E pluribus unum's picture

Doesn't he own a shitload of GS? Why did he use JPM?

Thu, 02/04/2010 - 19:09 | Link to Comment deadhead
deadhead's picture

good question and I would like to hear what others think...

buffett loaned 5 billion to gs and has warrants on the common at 115 as i recall....

Thu, 02/04/2010 - 19:01 | Link to Comment VegasBD
VegasBD's picture

Let gas hit $6/gallon and it might be worth it once trucking industry implodes

Fri, 02/05/2010 - 02:02 | Link to Comment Big Red
Big Red's picture

I just don't know why triples or even many more trailers (12, 16, think Australia's truck-trains haulin' ass through the outback) wouldn't be viable and employed along a great deal of the interstate highway system, who the hell else will be on those interstates except the government?

Is that why all the bridges are getting fixed and the interstates refurbished: phase one is monies to prevailing-wage businesses (unions), phase two for tanks and armor to roll along...?

Nah, I'm just kidding. ...

Thu, 02/04/2010 - 19:27 | Link to Comment phaesed
phaesed's picture

wow... anyone who passes up that deal is silly, go long BRKB, short treasuries of equal maturity and make bank off the spread. BRKB isn't going to blow out and Microsoft did basically the same deal awhile ago, check microsofts bonds now.

Thu, 02/04/2010 - 19:29 | Link to Comment Gordon Freeman
Gordon Freeman's picture

Ultra-safe coupon and principal.  This ain't GE...

Thu, 02/04/2010 - 20:19 | Link to Comment Anonymous
Thu, 02/04/2010 - 21:14 | Link to Comment Anonymous
Thu, 02/04/2010 - 21:54 | Link to Comment Anonymous
Thu, 02/04/2010 - 21:55 | Link to Comment deadhead
deadhead's picture

$10 million purchase will receive a complimentary model Lionel choo choo train.

$100 million gets a gold plated caboose.

$500 million gets you lunch at Dairy Queen with Buffett (you pay for cheezburger)

Thu, 02/04/2010 - 22:01 | Link to Comment Anonymous
Fri, 02/05/2010 - 08:40 | Link to Comment Anonymous
Do NOT follow this link or you will be banned from the site!