Buffet Places $250 Million on Tiffany
February 16, 09
Warren E. Buffett is enlarging his investment in jewelry retailing, agreeing on Thursday to buy $250 million of debt from Tiffany & Co. via subsidiaries of his holding company Berkshire Hathaway.
In a Securities filing, Tiffany said it had sold Berkshire $125 million of eight-year notes and $125 million of 10-year notes, both yielding 10 percent.
Tiffany plans to use the proceeds to refinance existing debt and for general corporate purposes. The investment is at least the seventh time since September that Berkshire has secured a payout of at least 10 percent by buying company bonds, preferred stock or convertible securities.
Buffet has holdings in a number of jewelry retailing, including in Ben Bridge, Borsheim’s and Helzberg Diamond.