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PCP Deal - Financing

John Hjorth

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In the last couple of weeks I have tried find some information about the financing of the PCP deal, so far unfortunately without luck.


I suppose all former PCP shareholders by now have received cash for their PCP shares according to the merger agreement.


I remember seeing a Youtube video linked to from this board, where Mr. Buffett mentioned that a part of the acquisition plan [most likely - I do not recall the exactly verbal expression from Mr. Buffett in the video] was to take on some leverage for BRK.


Any insights and sources on this matter from my fellow board members would be much appreciated.


Thank you in advance.

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I suspect the deal doesn't get done for less than the price that was negotiated.  Management at PCP is very focused on price and wasn't going to sell on the cheap without extrinsic pressure, which i don't see having happened because the market dipped. 

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"We'll probably borrow about $10 billion and use about $23 billion of our cash," Buffett said.






Thank you for the link above.


The reason also I asked the question was that I see no borrowing activity for BH Finance Corp. at the BRK website, in the SEC filing section. I suppose it must be a bank loan then.

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