> Warren Buffett Blog: Warren Buffett helps Burger King

Tuesday, September 2, 2014

Warren Buffett helps Burger King

Warren Buffett is putting up some of the cash for Burger King's $11 billion deal to buy Canadian coffee-and-doughnut chain Tim Hortons. As part of the deal, the combined company's headquarters will be in Toronto, instead of BK's current home base of Miami, which could help it save money in U.S. taxes. 

As part of the deal, Berkshire Hathaway will provide $3 billion in exchange for preferred shares in the new company. The coupon on those shares: a hefty 9 percent. 

Burger King also expects the debt for the deal to have a junk rating, indicating higher borrowing costs.