Berkshire Hathaway Now Owns 27% of USG

Warren Buffett's

(NYSE:

) has converted part of its debt in

into more than $600 million of common stock. Berkshire Hathaway and Canadian-based Fairfax Financial acquired $400 million of USG convertible senior notes in a private placement back in 2008. The notes had a 10 percent interest rate, on par with similar rates that Berkshire received when it invested $8 billion in

and

.

Following the move, Berkshire owns 38.46 million shares, translating to an ownership of slightly more than 27 percent of the building products company. “If the Berkshire entities declined to convert the called notes and allowed such notes to be redeemed, the Berkshire entities would have received an aggregate redemption payment in an amount less than the value of the common stock received on conversion,” according to a filing released on January 2.