New Issue: IBM gives details about $4 billion four-part issue of fixed-rate notes

By Devika Patel

Knoxville, Tenn., May 1 – International Business Machines Corp. offered further details about a $4 billion sale of notes (A2/A/A) that priced in four tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.

The company sold $1.25 billion of 1.7% seven-year notes at a Treasuries plus 120 basis points spread. These notes priced at 99.815 to yield 1.728%.

A $1.35 billion tranche of 1.95% 10-year notes priced at a spread of 135 bps over Treasuries. These notes priced at 99.629 to yield 1.991%.

A $650 million offering of 2.85% 20-year notes priced at a spread of 160 bps over Treasuries. These notes priced at 99.365 to yield 2.892%.

The company also sold $750 million of 2.95% 30-year notes at a spread of 170 bps over Treasuries. These notes priced at 99.171 to yield 2.992%.

The seven-year note was initially talked to print in the Treasuries plus 150 bps area, the 10-year issue was talked at the 165 bps spread area, the 20-year notes were guided at the 190 bps spread area and the 30-year bond was talked to price at the 200 bps spread area.

BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Santander Investment Securities Inc., SG Americas Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The company is an information technology and computer company based in Armonk, N.Y.

Issuer:	International Business Machines Corp.
Amount:	$4 billion
Description:	Notes
Bookrunners:	BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Santander Investment Securities Inc., SG Americas Securities LLC and Wells Fargo Securities LLC
Co-managers:	ING Financial Markets LLC, Lloyds Securities Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc., Academy Securities Inc., Blaylock Van, LLC and Drexel Hamilton LLC
Trade date:	April 30
Settlement date:	May 7
Ratings:	Moody’s: A2
	S&P: A
	Fitch: A
Distribution:	SEC registered
Seven-year notes
Amount:	$1.25 billion
Maturity:	May 15, 2027
Coupon:	1.7%
Price:	99.815
Yield:	1.728%
Spread:	Treasuries plus 120 bps
Call:	Make-whole call at Treasuries plus 20 bps until March 15, 2027, then a par call
Price guidance:	Treasuries plus 150 bps area
10-year notes
Amount:	$1.35 billion
Maturity:	May 15, 2030
Coupon:	1.95%
Price:	99.629
Yield:	1.991%
Spread:	Treasuries plus 135 bps
Call:	Make-whole call at Treasuries plus 20 bps until Feb. 15, 2030, then a par call
Price guidance:	Treasuries plus 165 bps area
20-year notes
Amount:	$650 million
Maturity:	May 15, 2040
Coupon:	2.85%
Price:	99.365
Yield:	2.892%
Spread:	Treasuries plus 160 bps
Call:	Make-whole call at Treasuries plus 25 bps until Nov. 15, 2039, then a par call
Price guidance:	Treasuries plus 190 bps area
30-year notes
Amount:	$750 million
Maturity:	May 15, 2050
Coupon:	2.95%
Price:	99.171
Yield:	2.992%
Spread:	Treasuries plus 170 bps
Call:	Make-whole call at Treasuries plus 25 bps until Nov. 15, 2049, then a par call
Price guidance:	Treasuries plus 200 bps area

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