Berkshire Hathaway Invests in Tiffany
By JCK Online Staff -- JCK Online, 2/17/2009 11:48:00 AM
Warren Buffett’s Berkshire Hathaway has agreed to invest $250 million in bonds issued by Tiffany, the Financial Times reports.
Tiffany’s shares have lost a third of their value since September. It says it will use the proceeds of the bonds, which will have an annual yield of 10 percent, to refinance its debts and for general corporate purposes.
In November last year when the credit crisis broke, the jeweler said it had been in negotiations to raise $300 million to repay $100 million of senior notes coming due this year, and to fund potential share repurchases, the newspaper reports.
It subsequently sold $100 million in bonds due in 2015 to institutional investors in December, at 9 percent, the newspaper reports.
Berkshire Hathaway is buying two tranches of bonds, maturing in 2017 and 2019 respectively, the newspaper reports.
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