Berkshire Hathaway Files to Raise Capital

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Berkshire Hathaway Inc. (NYSE: BRK-A) is about to raise some new debt financing. An SEC filing S-3ASR from Warren Buffett and friends was filed on behalf of the Berkshire Hathaway Finance Corporation unit to be sold as guarantee of Berkshire Hathaway Inc. of debt securities of Berkshire Hathaway Finance Corporation. The formal dollar amount was not shown but that will be out in the coming days. It is not that common for Berkshire Hathaway to be tapping the public bond market, but it is not all that uncommon either.

Berkshire Hathway's S-3ASR filing said:

We will issue senior debt securities on a senior unsecured basis under an indenture, dated as of February 1, 2010, by and among Berkshire, Berkshire Hathaway Finance Corporation and The Bank of New York Mellon Trust Company, N.A.. BHFC may also issue debt securities under this indenture; however, the debt securities described herein are solely issued by Berkshire Hathaway Inc.

As far as the use of proceeds:

Except as any accompanying prospectus supplement may state, the net proceeds from the sale of securities will be used for general corporate purposes.

Berkshire Hathaway has a market cap of about $243 billion, according to Yahoo! Finance, and with shares at $146,720, the 52-week trading range is $116,850 to $147,312.

Filed under: 24/7 Wall St. Wire, Activist Investor, Banking & Finance, Buffett, Conglomerates Tagged: BRK-A, featured