By Andrea Heisinger
New York, May 2 - International Business Machines Corp. was in the market Thursday with a $2.25 billion sale of notes (Aa3/AA-/A+) in two maturities, a market source said.
The $1 billion of 0.45% three-year notes priced at a spread of Treasuries plus 25 basis points. Initial talk was in the high 20 bps to 30 bps area and was revised to 25 bps to 27 bps.
A $1.25 billion tranche of 1.625% seven-year notes sold at a spread of 67 bps over Treasuries. Guidance was initially in the low 70 bps area and later shifted to the 70 bps area.
Full terms were not available at press time.
Bookrunners were BofA Merrill Lynch, BNP Paribas Securities Corp., RBS Securities Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes.
IBM last tapped the U.S. bond market with a $2 billion offering in two tranches on Feb. 5.
The information technology and computer company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | BofA Merrill Lynch, BNP Paribas Securities Corp., RBS Securities Inc., Wells Fargo Securities LLC
|
| Trade date: | May 2
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA-
|
| Fitch: A+
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | 2016
|
| Coupon: | 0.45%
|
| Spread: | Treasuries plus 25 bps
|
| Price talk: | High 20 bps to 30 bps range (initial), 25 bps to 27 bps (revised)
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | 2020
|
| Coupon: | 1.625%
|
| Spread: | Treasuries plus 67 bps
|
| Price talk: | Low 70 bps (initial), 70 bps area (revised)
|
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