By Andrea Heisinger
New York, Nov. 3 - International Business Machines Corp. sold $2 billion of notes (A1/A+/A+) in two tranches on Tuesday, an informed source said.
A $750 million tranche of two-year floating-rate notes sold at par to yield three-month Libor plus 4 basis points. This was slightly tighter than talk of Libor plus 5 bps, a source away from the deal said. The tranche is non-callable.
The $1.25 billion tranche of 2.1% unsecured notes due 2013 priced at 99.919 to yield 2.124% with a spread of Treasuries plus 70 bps. The notes priced in line with guidance of 70 bps.
The company last sold bonds on Oct. 9, 2008. That deal totaled $4 billion in three tranches.
Citigroup Global Markets, HSBC Securities and Morgan Stanley ran the books.
Proceeds will be used for general corporate purposes.
The computer and IT company is based in Armonk, NY.
| Issuer: | International Business Machines Corp.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets, HSBC Securities, Morgan Stanley
|
| Trade date: | Nov. 3
|
| Settlement date: | Nov. 6
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Two-year floaters
|
| Amount: | $750 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Nov. 4, 2011
|
| Coupon: | Three-month Libor plus 4 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 4 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 5 bps
|
|
|
| Notes due 2013
|
| Amount: | $1.25 billion
|
| Issue: | Unsecured notes
|
| Maturity: | May 6, 2013
|
| Coupon: | 2.1%
|
| Price: | 99.919
|
| Yield: | 2.124%
|
| Spread: | Treasuries plus 70 bps |
|
| Price talk: | 70 bps
|
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