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Berkshire Hathaway determines yield, consideration for $1.5B tender offer

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Berkshire Hathaway determines yield, consideration for $1.5B tender offer

Berkshire Hathaway Energy and subsidiary MidAmerican Funding LLC have determined the reference yield and total consideration for their $1.5 billion tender offer for certain series of outstanding bonds.

The $85.5 million principal amount of MidAmerican Funding's outstanding 6.927% bonds due 2029 have a reference yield of 2.436% with total considerations of $1,343.69 per $1,000 principal amount of bonds, according to a Dec. 28 release.

For the Berkshire Hathaway Energy bonds: $174.0 million of its outstanding 8.48% bonds due 2028 have a reference yield of 2.436% with total considerations of $1,471.42 per $1,000 principal amount of bonds; $775.1 million of its outstanding 6.5% bonds due 2037 have a reference yield of 2.764% with total considerations of $1,404.31 per $1,000 principal amount of bonds; and $30.1 million of its outstanding 6.125% bonds due 2036 have a reference yield of 2.764% with total considerations of $1,349.57 per $1,000 principal amount of bonds.

The $294.1 million of its $550 million outstanding 5.95% bonds due 2037 did not have a final reference yield and total consideration.

The company said it will not accept for purchase any additional bonds prior to the expiration of the tender offer on Jan. 11, 2018.

Holders whose bonds are accepted for purchase will receive the applicable total consideration per $1,000 principal amount of notes, including an early tender premium of $30 per $1,000 principal amount of bonds.

Citigroup Global Markets Inc. is acting as the dealer manager for the tender offer and solicitation agent for the consent solicitation.