
(9)	MEHC Debt

Senior Debt

MEHC senior debt represents unsecured senior obligations of MEHC and consists of the following, including unamortized premiums and discounts, as of December 31 (in millions):



	Par Value		2013		2012

5.00% Senior Notes, due 2014	$	250	$	250	$	250
1.10% Senior Notes, due 2017	400		400		—
5.75% Senior Notes, due 2018	650		649		649
2.00% Senior Notes, due 2018	350		350		—
3.75% Senior Notes, due 2023	500		500		—
8.48% Senior Notes, due 2028	475		483		484
6.125% Senior Bonds, due 2036	1,700		1,699		1,699
5.95% Senior Bonds, due 2037	550		548		547
6.50% Senior Bonds, due 2037	1,000		992		992
5.15% Senior Notes, due 2043	750		745		—
Total MEHC Senior Debt	$	6,625	$	6,616	$	4,621

Reflected as:
Current liabilities			$	250	$	—
Noncurrent liabilities			6,366		4,621
Total MEHC Senior Debt			$	6,616	$	4,621

Junior Subordinated Debentures

As of December 31 (in millions):



	Par Value		2013		2012

Total MEHC junior subordinated debentures - noncurrent	$	2,594	$	2,594	$	—

MEHC issued junior subordinated debentures to certain subsidiaries of Berkshire Hathaway pursuant to an indenture, by and between MEHC and The Bank of New York Mellon Trust Company, N.A., as trustee, dated as of December 19, 2013. The junior subordinated debentures are unsecured and junior in right of payment to MEHC's senior debt. The junior subordinated debentures (i) have a 30 year maturity; (ii) bear interest at a floating rate equal to (a) the greater of 1% and the LIBOR (the greater of such two rates, the "Base Rate") plus 200 basis points through the date prior to the third anniversary of the issuance date; (b) the Base Rate plus 300 basis points (or, if at least 50% of principal is repaid prior to the third anniversary of the issuance date, the Base Rate plus 200 basis points) from the third anniversary of the issuance date through the date prior to the seventh anniversary of the issuance date; and (c) the Base Rate plus 375 basis points from the seventh anniversary of the issuance date until the maturity of the junior subordinated debentures; and (iii) are redeemable at MEHC's option from time to time at par plus accrued and unpaid interest. The holders are restricted from transferring the junior subordinated debentures except to Berkshire Hathaway and its subsidiaries. As of December 31, 2013, the interest rate was 3.0%. Interest expense to Berkshire Hathaway for the years ended December 31, 2013, 2012 and 2011 was $3 million, $- million and $13 million, respectively.

In the fourth quarter of 2011, MEHC called and repaid at par value $191 million of its 6.5% CalEnergy Capital Trust III subordinated debt due in 2027 and recognized a loss on the redemption of $40 million.