Berkshire Hathaway Plans Benchmark Bond Sale To Refinance Portion Of Burlington Northern Debt

Burlington Northern train

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Bloomberg reports that Berkshire Hathaway, the holding company controlled by Warren Buffet, is planning a bond offering to help refinance debt it took on to acquire rail company Burlington Northern Santa Fe:Berkshire, which bought the railroad for $26.5 billion in 2010, may sell five- and 10-year notes in a benchmark offering, according to a person with knowledge of the transaction. Proceeds may be used to refinance $1.7 billion of notes that come due next month, said the person, who declined to be identified because terms aren’t set.

Buffett is seeking to extend maturities on Berkshire’s debt as a rally in U.S. investment-grade corporate bonds pushes yields to about the lowest level in more than two months.

Bank of America and Goldman Sachs are reported to be managing the offering.