By Andrea Heisinger
New York, Oct. 9 - International Business Machines Corp. priced $4 billion of notes in three tranches Thursday, an informed source said.
The $1.4 billion of 6.5% five-year notes priced at 99.647 to yield 6.584%, equivalent at pricing to Treasuries plus 387.5 basis points.
The $1.6 billion of 7.625% 10-year notes priced at 99.628 to yield 7.679%, or Treasuries plus 387.5 bps.
The $1 billion of 8% 30-year notes priced at 98.891 to yield 8.099%, or Treasuries plus 400 bps.
All three tranches priced in line with guidance, which was for a spread in the "high 300s" for the five- and 10-year tranches and a spread in the 400 bps area for the 30-year notes, the source said.
Bookrunners were Banc of America Securities LLC, Barclays Capital Inc., Credit Suisse and Deutsche Bank Securities.
Co managers were BNP Paribas Securities, HSBC Securities, Mitsubishi UFJ Securities, Mizuho, Morgan Stanley and UBS Investment Bank.
Proceeds will be used for general corporate purposes.
The computer technology and consulting company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Notes
|
| Total amount: | $4 billion
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital Inc., Credit Suisse, Deutsche Bank Securities
|
| Co managers: | BNP Paribas Securities, HSBC Securities, Mitsubishi UFJ Securities, Mizuho, Morgan Stanley, UBS Investment Bank
|
| Trade date: | Oct. 9
|
| Settlement date: | Oct. 15
|
| Ratings: | Moody's: A1
|
| S&P: A+
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $1.4 billion
|
| Maturity: | Oct. 15, 2013
|
| Coupon: | 6.5%
|
| Price: | 99.647
|
| Yield: | 6.584%
|
| Spread: | Treasuries plus 387.5 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $1.6 billion
|
| Maturity: | Oct. 15, 2018
|
| Coupon: | 7.625%
|
| Price: | 99.628
|
| Yield: | 7.679%
|
| Spread: | Treasuries plus 387.5 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 15, 2038
|
| Coupon: | 8%
|
| Price: | 98.891
|
| Yield: | 8.099%
|
| Spread: | Treasuries plus 400 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
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