MEHC to issue securites to investors for funding

By IVCPOST Staff Reporter

Aug 02, 2013 11:46 PM EDT

MidAmerican Energy Holdings Co announced that they plan to issue an estimated US$5.6 billion worth of securities to company investors. The transaction is to raise the funding needed for the purchase of NV Energy Inc. The issuance will be led by MEHC's parent company Berkshire Hathaway Inc.

According to a regulatory filing by Berkshire, "MEHC expects to fund the acquisition by issuing US$1.0 billion of MEHC common equity to its existing shareholders, US$2.0 billion of MEHC senior debt and US$2.6 billion of junior subordinated debentures to Berkshire Hathaway and its subsidiaries."

Berkshire Hathaway Inc is the multinational holding company with headquarters in Omaha, Nebraska. The American conglomerate led Warren Buffet oversees and manages a multitude of subsidiary companies. Berkshire wholly ones BNSF, Lubzirol, Fruit of the Loom, Dairy Queen, GEICO, NetJets, Helzberg Diamonds as well as 50% of Heinz along with an undisclosed portion of Mars Inc. The company also owns significant minority holdings in Wells Fargo, IBM, American Express and the Coca -Cola Company.

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