Feb. 4 (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. plans to sell $8 billion of senior unsecured notes to finance part of its acquisition of railroad Burlington Northern Sante Fe Corp., the company said in a regulatory filing.
The notes may be sold as soon as today, according to a person familiar with the offering.
The Omaha, Nebraska-based company plans to offer 1-year floating rate debt, 2- and 3-year notes that may pay a fixed or a floating rate, and 5-year fixed-rate securities, said the person, who declined to be identified because terms aren’t set.
Buffett is using debt, equity and Berkshire’s cash to finance the biggest purchase of his four decade career as chief executive officer. In November, the 79-year-old billionaire investor offered $26 billion for the 77.4 percent of Burlington Northern that Berkshire doesn’t already own in what he called an “all-in wager” on the U.S. economy.
The company hired JPMorgan Chase & Co. and Wells Fargo & Co. to underwrite the offering, the person said.
To contact the reporters on this story: Tim Catts in New York at tcatts1@bloomberg.net; Andrew Frye in New York at afrye@bloomberg.net
Last Updated: February 4, 2010 09:16 EST
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