Burger King Worldwide Inc

[CityFarmer]

The latest move of our mentor, Mr. Buffett. It is interesting to know the actual term. I reckon the PS should be convertible, to ride on the equity growth after the M&A...

Buffett to help finance Burger King's acquisition of Tim Hortons: WSJ

Berkshire Hathaway Inc chairman and CEO, Warren Buffett, is helping finance Burger King Worldwide Inc's take over of Canadian chain Tim Hortons Inc , the Wall Street Journal reported, citing people familiar with the matter.

Buffett will invest in the merger in the form of preferred shares, the people told the WSJ, adding that Berkshire is expected to provide about 25 percent of the deal's financing. (http://on.wsj.com/VL74SY)

The exact structure of Buffett's participation remains unclear, and discussions are ongoing, the Journal said.

Shares of the Canadian coffee and doughnut chain and U.S. fast-food company Burger King confirmed late on Sunday that they were discussing a merger. Investors and analysts said the deal was spurred in part by Canada's attractive tax policies. REUTERS
http://www.todayonline.com/business/buff...ortons-wsj

[weijian]

Even thogh i do not have a good grasp of the 'market rates' for such corporate bonds (or their ratings), i thought it is pretty mind boggling that Mr WB is able to get 9% on his convertibles, ctonsidering that we are in the 6th year of zero Fed rates still aflush with liquidity. My only conclusion is either (1) Burger King's deal is considered pretty risky, (2) Mr WB's has a really strong competitive moat in the form of his intangible 'branding'.

http://www.bloomberg.com/news/2014-08-26...ports.html