Berkshire unit weighs debt sale for solar project
http://www.omaha.com/article/20121110/MONEY/711109920/1697#berkshire-unit-weighs-debt-sale-for-solar-project
MidAmerican Energy Holdings Co., the power producer at Warren Buffetts Berkshire Hathaway Inc., said its weighing whether to sell more bonds in 2013 to finance a $2.4 billion solar venture in California.
The issuance is being considered for the first half of next year at Topaz Solar Farms, the MidAmerican unit of Omaha-based Berkshire said Friday in a regulatory filing. In February, Topaz issued $850 million in 5.75 percent bonds due in September 2039 to help fund the 550-megawatt project.
MidAmerican, led by Chief Executive Officer Greg Abel, has been expanding bets in renewable energy while adding to investments in natural gas. The firm created a unit in January to support wind, geothermal, solar and hydroelectric projects and may be betting that now is an advantageous time to borrow, said Joseph Salvatore, an energy analyst with Bloomberg New Energy Finance.
There seems to be a fairly decent appetite for the debt, Salvatore said. Rates are fairly low right now, and maybe theyre thinking that in two to three years, if the economic recovery speeds up, interest costs will be higher.