By Aleesia Forni
Virginia Beach, Feb. 6 - International Business Machines Corp. priced a four-part offering of notes (Aa3/AA-/A+) on Thursday, according to a syndicate source.
The issuance included $1 billion of two-year floaters priced at par to yield Libor plus 7 basis points.
A second tranche was $750 million floaters due 2019 priced at Libor plus 37 bps.
There was also $750 million of 1.95% five-year notes priced with a spread of 48 bps over Treasuries, or 99.75 to yield 2.001%.
A $2 billion tranche of 3.625% 10-year notes sold at 99.792 to yield 3.65%, or 95 bps over Treasuries.
All of the tranches priced at the tight end of talk.
BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities Inc. and RBC Capital Markets LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes.
The information technology and computer company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Senior notes
|
| Amount: | $4.5 billion
|
| Joint bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities Inc., RBC Capital Markets LLC
|
| Trade date: | Feb. 6
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: AA-
|
| Fitch: A+
|
|
|
| Floaters due 2016
|
| Amount: | $1 billion
|
| Maturity: | Feb. 12, 2016
|
| Coupon: | Libor plus 7 bps
|
| Price: | Par
|
| Yield: | Libor plus 7 bps
|
| Price talk: | Libor plus 7 to 8 bps, tightened from Libor plus 10 bps area
|
|
|
| Floaters due 2019
|
| Amount: | $750 million
|
| Maturity: | Feb. 12, 2019
|
| Coupon: | Libor plus 37 bps
|
| Price: | Par
|
| Yield: | Libor plus 37 bps
|
|
|
| Notes due 2019
|
| Amount: | $750 million
|
| Maturity: | Feb. 12, 2019
|
| Coupon: | 1.95%
|
| Price: | 99.75
|
| Yield: | 2.001%
|
| Spread: | Treasuries plus 48 bps
|
| Price talk: | Treasuries plus 50 bps area, tightened from Treasuries plus mid-50 bps area
|
|
|
| Notes due 2024
|
| Amount: | $2 billion
|
| Maturity: | Feb. 12, 2024
|
| Coupon: | 3.625%
|
| Price: | 99.792
|
| Yield: | 3.65%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 100 bps area, tightened from Treasuries plus 105 bps area
|
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