By Andrea Heisinger
New York, Feb. 5 - International Business Machines Corp. priced a combined $2 billion of notes (Aa3/AA-/A+) in two tranches on Tuesday, a market source said.
A $1 billion tranche of two-year floating-rate notes sold at par to yield Libor minus 2 basis points.
A $1 billion tranche of 1.25% five-year notes priced at 99.542 to yield 1.345% with a spread of Treasuries plus 47 bps. The notes were sold at the tight end of talk in the 50 bps area, plus or minus 3 bps.
Bookrunners were Barclays, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC.
Proceeds will be used for general corporate purposes.
IBM last priced debt in the U.S. market in a $1 billion sale of 10-year notes on July 25, 2012.
The information technology and computer company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Barclays, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA-
|
| Fitch: A+
|
|
|
| Two-year floaters
|
| Amount: | $1 billion
|
| Maturity: | Feb. 4, 2015
|
| Coupon: | Libor minus 2 bps
|
| Price: | Par
|
| Yield: | Libor minus 2 bps
|
| Call: | Non-callable
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 8, 2018
|
| Coupon: | 1.25%
|
| Price: | 99.542
|
| Yield: | 1.345%
|
| Spread: | Treasuries plus 47 bps
|
| Price talk: | 50 bps area, plus or minus 3 bps
|
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