Berkshire's MidAmerican To Issue Bonds for Construction

By Marc Castro

Jun 28, 2013 09:35 PM EDT

A unit of MidAmerican Energy Holdings Co, Solar Star Funding LLC has complete a notes offering to fund the ongoing construction of Solar 1 and Solar 3 projects located in Southern California. The note issue is projected to be worth US$1 billion and the notes a carry a 5.375% interest rate.

Through a statement, MidAmerican is one of the units under Berkshire Hathaway Inc of the venerated Warren Buffett. It had said that the projects currently being developed were formerly known as the Antelope Valley solar projects. These projects were purchased by MidAmerican from SunPower Corp last January for about US$2.5 billion. Put together, the Solar Star projects are the world's largest solar power developments under construction.

MidAmerican also confirmed that the notes offer for the solar project is the largest on record single project bond financing for such a purpose. In these notes, the princlpal amortizes semi-annually commencing on June 30, 2016. The final maturity date is June 30, 2035.

Aside from the solar projets, the Des Moines, Iowa based MidAmerican also provides electric as well as natural gas services to more than seven million customers located worldwide.

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