By Devika Patel
Knoxville, Tenn., Jan. 25 – International Business Machines Corp. offered further details about a $2.75 billion four-tranche issue of senior notes (Aa3/AA-/A+) in an FWP filed Wednesday with the Securities and Exchange Commission. The notes priced on Tuesday.
IBM sold $500 million of three-year floating-rate notes at Libor plus 23 basis points. These notes are non-callable.
The company priced $750 million of 1.9% three-year fixed-rate notes at a spread of Treasuries plus 45 bps. These notes priced at 99.904 to yield 1.933% and have a make-whole call at Treasuries plus 10 basis points.
In a five-year tranche, IBM sold $1 billion of 2.5% notes at a Treasuries plus 60 bps spread. These notes priced at 99.869 to yield 2.528% and have a make-whole call at Treasuries plus 10 basis points.
The final tranche of $500 million of 3.3% 10-year notes priced with a spread of 90 bps over Treasuries. These notes priced at 99.469 to yield 3.363% and have a make-whole call at Treasuries plus 15 basis points.
BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used for general corporate purposes, according to a 424B3 filing with the Securities and Exchange Commission.
The information technology and computer company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Amount: | $2.75 billion
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| Description: | Senior notes
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| Bookrunners: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC
|
| Co-managers: | Santander Investment Securities Inc., U.S. Bancorp Investments Inc., Great Pacific Securities and Multi-Bank Securities Inc.
|
| Trade date: | Jan. 24
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| Settlement date: | Jan. 27
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Fitch: A+
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| Distribution: | SEC registered
|
|
|
| Three-year floaters
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| Amount: | $500 million
|
| Maturity: | Jan. 27, 2020
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| Coupon: | Libor plus 23 bps
|
| Price: | Par
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| Yield: | Libor plus 23 bps
|
| Call feature: | Non-callable
|
|
|
| Three-year notes
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| Amount: | $750 million
|
| Maturity: | Jan. 27, 2020
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| Coupon: | 1.9%
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| Price: | 99.904
|
| Yield: | 1.933%
|
| Spread: | Treasuries plus 45 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Five-year notes
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| Amount: | $1 billion
|
| Maturity: | Jan. 27, 2022
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| Coupon: | 2.5%
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| Price: | 99.869
|
| Yield: | 2.528%
|
| Spread: | Treasuries plus 60 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
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|
|
| 10-year notes
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| Amount: | $500 million
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| Maturity: | Jan. 27, 2027
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| Coupon: | 3.3%
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| Price: | 99.469
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| Yield: | 3.363%
|
| Spread: | Treasuries plus 90 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps
|
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