Berkshire to get 9% on Burger King preferreds
Berkshire Hathaway Inc. will earn 9 percent on a $3 billion preferred equity stake that Warren Buffett's firm will take to finance Burger King Worldwide Inc.'s takeover of Tim Hortons Inc.
A term loan tied to the deal will probably pay the London interbank offered rate plus at least 300 basis points, Burger King Chief Executive Officer Daniel Schwartz said today on a conference call with analysts. Bonds linked to the transaction will pay "maybe a little bit, right around that range, a little bit higher," Schwartz said.
A basis point is 0.01 percentage point.
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