Williams Gets Berkshire Financing

Williams Cos. ( WMB) was soaring in the premarket on a report it was closing in on $2 billion of new financing, including an investment from Warren Buffett. The company also agreed to sell about $1 billion in assets.

Williams has a preliminary agreement with Citigroup ( C) and Buffett's Berkshire Hathaway ( BRK.A) for $2 billion of secured debt, according to the Wall Street Journal.

Williams's stock was soaring 37% to $4.05 in the Instinet premarket.

This is Buffett's second investment in Williams. In March, his MidAmerican Energy acquired Williams's Kern River Gas Transmission Co. for $450 million. It also bought 1.47 million shares of convertible preferred stock for about $275 million. MidAmerican this week agreed to acquire Dynegy's ( DYN) Northern Natural Gas pipeline for $928 million and $950 million in assumed debt.

The Williams investment comes a week after the energy company failed to renew its unsecured bank loans last week, leading to credit downgrades that in turn triggered collateral calls. The company faces $800 million in debt repayments this week.

More from Opinion

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Many Chip Stocks Look Cheap Here, as Long as the Economy Holds Up

Many Chip Stocks Look Cheap Here, as Long as the Economy Holds Up

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense