Friday, November 20, 2009

Buffett borrows $8 billion to help pay for BNSF

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Warren Buffett's Berkshire Hathaway, Inc. said in documents filed with the Securities and Exchange Commission Thursday that it has arranged an $8 billion loan to help pay for its acquisition of BNSF Railway. Berkshire is paying $26.3 billion, or $100 per share, for the 73% of BNSF that it does not already own. It signed the financing deal with JPMorgan Chase and Wells Fargo on Wednesday.

Buffett has announced that Berkshire to borrow half of the $16 billion cash needed for the transaction. The loan is to be repaid over a three-year period.