Berkshire Hathaway Said to Borrow $275 Million for Texas Wind

Source: By Brian Eckhouse, Bloomberg News • Posted: Monday, October 5, 2015

Warren Buffett’s Berkshire Hathaway Inc. borrowed $275 million for a 300-megawatt wind farm in Texas that’s supplying power to Austin Energy, according to two people familiar with the deal.

Mizuho Financial Group Inc. led the 10-year financing for the Jumbo Road wind farm, said the two people, who asked not to be identified because they’re not authorized to discuss the deal publicly. CoBank Financial Corp., Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Banking Corp. also participated. Pricing started at 162.5 basis points over the London interbank offered rate.

Berkshire Hathaway’s BHE Renewables unit owns the wind farm, which it acquired from Chicago-based Lincoln Clean Energy LLC. Ashton Newman, a spokeswoman for Berkshire’s MidAmerican Energy Co., confirmed that the deal closed in an e-mail Thursday. She wouldn’t provide terms.

Austin Energy, the local utility, has an 18-year power-purchase agreement with Jumbo Road, southwest of Amarillo, Texas. It began operations in April and uses General Electric Co. turbines, Newman said.