By Cristal Cody
Tupelo, Miss., May 8 – International Business Machines Corp. priced a $20 billion eight-tranche offering of notes (A1/A/A) on Wednesday, according to a market source.
The company sold $1.5 billion of two-year floating-rate notes at Libor plus 40 basis points.
IBM priced $1.5 billion of 2.8% two-year fixed-rate notes with a spread of Treasuries plus 50 bps.
A $2.75 billion offering of 2.85% three-year notes priced with a 60 bps over Treasuries spread.
The company sold $3 billion of 3% five-year notes at an 80 bps over Treasuries spread.
A $3 billion tranche of 3.3% seven-year notes prices with a Treasuries plus 95 bps spread.
IBM brought $3.25 billion of 3.5% 10-year notes to the primary market at a spread of 105 bps over Treasuries.
A $2 billion tranche of 4.15% 20-year notes priced at a spread of 130 bps over Treasuries.
In the final tranche, the company sold $3 billion of 4.25% 30-year notes at a spread of 145 bps over Treasuries.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG, BofA Merrill Lynch and Mizuho Securities USA Inc. were the bookrunners.
Proceeds will be used to acquire Red Hat, Inc. and for general corporate purposes.
The company is an information technology and computer company based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Amount: | $20 billion
|
| Description: | Notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG, BofA Merrill Lynch and Mizuho Securities USA Inc.
|
| Trade date: | May 8
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $1.5 billion
|
| Maturity: | May 13, 2021
|
| Coupon: | Libor plus 40 bps
|
|
|
| Two-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 13, 2021
|
| Coupon: | 2.8%
|
| Spread: | Treasuries plus 50 bps
|
|
|
| Three-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | May 15, 2022
|
| Coupon: | 2.85%
|
| Spread: | Treasuries plus 60 bps
|
|
|
| Five-year notes
|
| Amount: | $3 billion
|
| Maturity: | May 15, 2024
|
| Coupon: | 3%
|
| Spread: | Treasuries plus 80 bps
|
|
|
| Seven-year notes
|
| Amount: | $3 billion
|
| Maturity: | May 15, 2026
|
| Coupon: | 3.3%
|
| Spread: | Treasuries plus 95 bps
|
|
|
| 10-year notes
|
| Amount: | $3.25 billion
|
| Maturity: | May 15, 2029
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 105 bps
|
|
|
| 20-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2039
|
| Coupon: | 4.15%
|
| Spread: | Treasuries plus 130 bps
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | May 15, 2049
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 145 bps
|
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