By Andrea Heisinger
New York, Oct. 27 - International Business Machines Corp. priced $1.85 billion of notes (Aa3/A+/A+) in two parts, an informed source said.
The $1.35 billion of 0.875% three-year notes were priced at 99.888 to yield 0.913% with a spread of Treasuries plus 40 basis points. The notes were sold at the tightest end of guidance, which was in the 40 bps to 45 bps range.
The tranche has a make-whole call at 10 bps over Treasuries.
A $500 million tranche of 2.9% 10-year paper was sold at 99.065 to yield 3.009% with a spread of Treasuries plus 62.5 bps. They also priced at the tight end of talk in the 65 bps area, plus or minus 2.5 bps.
The 10-year notes have a make-whole call at Treasuries plus 12.5 bps.
Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The technology company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Notes
|
| Amount: | $1.85 billion
|
| Bookrunners: | Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Three-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | Oct. 31, 2014
|
| Coupon: | 0.875%
|
| Price: | 99.888
|
| Yield: | 0.913%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 40 bps to 45 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 2.9%
|
| Price: | 99.065
|
| Yield: | 3.009%
|
| Spread: | Treasuries plus 62.5 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 65 bps area, plus or minus 2.5 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
