Berkshire Hathaway, the company headed by legendary investor Warren Buffett, has loaned $250 million to Tiffany.
The new loans are due in 2017 and 2019 and have a hefty 10 percent annual interest rate, although that’s less than Buffett’s rates for other recent loans. Tiffany considers itself lucky to raise money in this environment. “Certainly, a year ago the rate would be a lot lower than 10 percent,” says vice president of investor relations Mark Aaron.
Buffett’s bonds replace two upcoming payments: two pieces of debt totaling $116 million due in March, and a $40 million long-term debt due in July.