By Devika Patel
Knoxville, Tenn., Sept. 6 – IBM Credit LLC priced $2 billion of notes (A1/A+/A+) in five tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $600 million of two-year floating-rate notes at par to yield Libor plus 15 basis points.
The company also sold $600 million of four-year floating-rate notes at par to yield Libor plus 26 bps.
IBM sold $800 million of 1.625% two-year notes at a spread of Treasuries plus 37 basis points. These notes priced at 99.924 to yield 1.664%.
A $500 million tranche of 1.8% four-year notes priced at a spread of 47 bps over Treasuries. These notes priced at 99.793 to yield 1.864%.
IBM brought $500 million of 2.2% five-year notes at Treasuries plus 55 bps. These notes priced at par.
BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes.
The company is a subsidiary of International Business Machines Corp., an information technology and computer company is based in Armonk, N.Y.
| Issuer: | IBM Credit LLC
|
| Amount: | $2 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | ANZ Securities, Inc., PNC Capital Markets LLC and TD Securities (USA) LLC
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 8
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $600 million
|
| Maturity: | Sept. 6, 2019
|
| Coupon: | Libor plus 15 bps
|
| Price: | Par
|
| Yield: | Libor plus 15 bps
|
| Call feature: | Non-callable
|
|
|
| Four-year floaters
|
| Amount: | $600 million
|
| Maturity: | Jan. 20, 2021
|
| Coupon: | Libor plus 26 bps
|
| Price: | Par
|
| Yield: | Libor plus 26 bps
|
| Call feature: | Non-callable
|
|
|
| Two-year notes
|
| Amount: | $800 million
|
| Maturity: | Sept. 6, 2019
|
| Coupon: | 1.625%
|
| Price: | 99.924
|
| Yield: | 1.664%
|
| Spread: | Treasuries plus 37 bps
|
| Call feature: | Make-whole call at Treasuries plus 7 bps at any time
|
|
|
| Four-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 20, 2021
|
| Coupon: | 1.8%
|
| Price: | 99.793
|
| Yield: | 1.864%
|
| Spread: | Treasuries plus 47 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps at any time
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 8, 2022
|
| Coupon: | 2.2%
|
| Price: | Par
|
| Yield: | 2.2%
|
| Spread: | Treasuries plus 55 bps
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps at any time
|
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