By Aleesia Forni
New York, Feb. 17 – International Business Machines Corp. sold $5 billion of senior notes (Aa3/A-/A+) in five tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The sale included $900 million of 18-month floating-rate notes sold at par to yield Libor plus 45 basis points.
The notes sold tighter than talk set in the 55 bps area over Libor.
Also, $1.2 billion of 1.8% three-year notes sold at 99.959 to yield 1.812%, or Treasuries plus 90 bps.
Pricing came at the tight end of price talk set in the Treasuries plus 95 bps area.
The company also issued $900 million of 2.25% of five-year notes with a spread of Treasuries plus 105 bps. Pricing was at 99.873 to yield 2.277%.
Price talk was in the Treasuries plus 115 bps area.
A $1.35 billion tranche of 3.45% 10-year notes priced at 99.665 to yield 3.49% with a spread of 170 bps over Treasuries.
The notes sold tighter than the Treasuries plus 180 bps area talk.
Finally, $650 million of 4.7% 30-year bonds sold at 99.236 to yield 4.748%. The notes sold at Treasuries plus 210 bps, tighter than guidance that was set in the range of Treasuries plus 215 bps to 220 bps.
Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., MUFG, Mizuho Securities USA Inc. and Wells Fargo Securities, LLC are the 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: | $5 billion
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., MUFG, Mizuho Securities USA Inc., Wells Fargo Securities, LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Standard Chartered Bank
|
| Trade date: | Feb. 16
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody’s: Aa3
|
| Standard & Poor’s: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| 18-month floaters
|
| Amount: | $900 million
|
| Maturity: | Aug. 18, 2017
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
| Price guidance: | Libor plus 55 bps area
|
|
|
| Three-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | May 17, 2019
|
| Coupon: | 1.8%
|
| Price: | 99.959
|
| Yield: | 1.812%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps area
|
| Make-whole call: Treasuries plus 15 bps
|
|
|
| Five-year notes
|
| Amount: | $900 million
|
| Maturity: | Feb. 19, 2021
|
| Coupon: | 2.25%
|
| Price: | 99.873
|
| Yield: | 2.277%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 115 bps area
|
| Make-whole call: Treasuries plus 20 bps
|
|
|
| 10-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | Feb. 19, 2026
|
| Coupon: | 3.45%
|
| Price: | 99.665
|
| Yield: | 3.49%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 180 bps area
|
| Make-whole call: Treasuries plus 30 bps
|
|
|
| 30-year notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 19, 2046
|
| Coupon: | 4.7%
|
| Price: | 99.236
|
| Yield: | 4.748%
|
| Spread: | Treasuries plus 210 bps
|
| Price guidance: | Treasuries plus 215 bps to 220 bps
|
| Make-whole call: Treasuries plus 35 bps
|
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