By Andrea Heisinger
New York, July 19 - International Business Machines Corp. sold $2 billion of 1.95% five-year senior notes on Tuesday to yield Treasuries plus 65 basis points, a market source said.
The notes were priced at the tight end of guidance in the 70 bps area.
The notes (Aa3/A+/A+) were priced at 99.428 to yield 2.071%. They have a make-whole call at Treasuries plus 15 bps.
Bookrunners were Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and UBS Securities LLC.
Proceeds are being used for general corporate purposes.
IBM last priced bonds in a $1 billion sale of 1.25% notes due 2014 on May 9 at 37 bps over Treasuries. The company's last sale of notes with a five-year maturity was on Dec. 6, 2010, when it priced $1 billion of 2% bonds due 2015 at 55 bps over Treasuries.
The information technology and computer company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Maturity: | July 22, 2016
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., UBS Securities LLC
|
| Coupon: | 1.95%
|
| Price: | 99.428
|
| Yield: | 2.071%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Trade date: | July 19
|
| Settlement date: | July 22
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A+
|
| Fitch: A+
|
| Price talk: | 70 bps area
|
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