By Marisa Wong and Cristal Cody
Los Angeles, Feb. 3 – International Business Machines Corp. disclosed details of its $1.8 billion of notes (A3/A-) priced in three parts on Wednesday in an FWP filed Thursday with the Securities and Exchange Commission.
The company sold $650 million of 2.2% notes with a five-year tenor at 99.986 to yield 2.203%, or a 60 basis points spread over Treasuries, 25 bps low to talk in the 85 bps area.
The middle tranche was $500 million of 2.72% notes with a 10-year tenor priced at 99.983 to yield 2.722%, or a spread of 95 bps over Treasuries, versus talk in the 115 bps aera.
The $650 million of long-dated 30-year notes were priced with a 3.43% coupon at 99.981 to yield 3.431%, or a 132 bps spread over Treasuries. Price talk had the notes coming in the Treasuries plus 155 bps area.
Each of the three dollar-denominated tranches has a make-whole call followed by a par call.
Barclays, BofA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America Inc. are joint bookrunning managers.
Proceeds will be used for general corporate purposes.
IBM also sold €2 billion of notes in the euro-denominated market on Wednesday, including €1 billion of 0.875% notes due 2030 and €1 billion of 1.25% notes due 2034.
The information technology and computer company based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Amount: | $1.8 billion
|
| Issue: | Notes
|
| Bookrunners: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America Inc.
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2027 notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 9, 2027
|
| Coupon: | 2.2%
|
| Price: | 99.986
|
| Yield: | 2.203%
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps prior to Jan. 9, 2027; par call after that
|
| Price talk: | Treasuries plus 85 bps area
|
| Cusip: | 459200KM2
|
|
|
| 2032 notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 9, 2032
|
| Coupon: | 2.72%
|
| Price: | 99.983
|
| Yield: | 2.722%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps prior to Nov. 9, 2031; par call after that
|
| Price talk: | Treasuries plus 115 bps area
|
| Cusip: | 459200KN0
|
|
|
| 2052 notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 9, 2052
|
| Coupon: | 3.43%
|
| Price: | 99.981
|
| Yield: | 3.431%
|
| Spread: | Treasuries plus 132 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to Aug. 9, 2051; par call after that
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 459200KP5
|
|
|
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