By Andrea Heisinger
New York, May 3 - International Business Machines Corp. gave the terms of its $2.25 billion sale of notes (Aa3/AA-/A+) priced in two maturities, according to an FWP filing with the Securities and Exchange Commission Friday.
The $1 billion of 0.45% three-year notes priced at 99.568 to yield 0.545% with 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.
There is a make-whole at Treasuries plus 5 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.
The tranche has a make-whole redemption at 12.5 bps over Treasuries.
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
|
| Co-managers: | BNY Mellon Capital Markets, LLC, CastleOak Securities, LP, MFR Securities, Inc., Toussaint Capital Partners, LLC
|
| Trade date: | May 2
|
| Settlement date: | May 7
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA-
|
| Fitch: A+
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 6, 2016
|
| Coupon: | 0.45%
|
| Price: | 99.568
|
| Yield: | 0.545%
|
| Spread: | Treasuries plus 25 bps
|
| Call: | Make-whole at Treasuries plus 5 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: | May 15, 2020
|
| Coupon: | 1.625%
|
| Price: | 99.249
|
| Yield: | 1.739%
|
| Spread: | Treasuries plus 67 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | Low 70 bps (initial), 70 bps area (revised)
|
© 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.
