By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Jan. 30 – IBM International Capital Pte., Ltd. priced fixed-rate notes in seven tranches totaling $5.5 billion (A3/A-/A-) on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
Parent company International Business Machines Corp. will guarantee the SEC-registered notes.
The $600 million of 4.7% notes due 2026 priced at 99.876 to yield 4.766%, or at Treasuries plus 45 basis points. Price talk was in the Treasuries plus 60 bps area.
A $500 million tranche of 4.6% notes due 2027 sold at 99.842 to yield 4.657%, or 55 bps over Treasuries. Talk had the spread coming in the 70 bps area.
The $500 million of notes due 2029, carrying a coupon of 4.6%, priced at 99.854 to yield 4.633%, or at Treasuries plus 65 bps. Talk was in the 80 bps area.
IBM priced $500 million of 4.75% notes due 2031 at 99.77 to yield 4.789%, or 75 bps over Treasuries. Talk was in the Treasuries plus 90 bps area.
A $1 billion tranche of 4.9% notes due 2034 sold at 99.75 to yield 4.932%, or at Treasuries plus 85 bps. Price talk was in the 100 bps area.
IBM sold a $1 billion tranche of 5.25% notes due 2044 at 99.596 to yield 5.283%, also at Treasuries plus 85 bps. Price talk was wider at the 105 bps area.
Finally, the company sold $1.4 billion 5.3% notes due 2054 at 99.435 to yield 5.338%, or at Treasuries plus 100 bps. Price talk was in the 120 bps area.
The 2026 notes feature a make whole call prior to maturity at Treasuries plus 10 bps.
The following six tranches of notes have a make-whole call and then a par call a number of months before the maturity date.
The 2027 notes and 2029 notes feature a make-whole call at Treasuries plus 10 bps until one month prior to their respective maturities.
The final four tranches feature a make-whole call at Treasuries plus 15 bps prior to two months before maturity in the case of the 2031 notes, before three months in the case of the 2034 notes, before six months in the case of the 2044 notes and 2054 notes. After those dates, they will transition to a par call.
Merrill Lynch (Singapore) Pte., Citigroup Global Markets Singapore Pte., Ltd., Goldman Sachs (Singapore) Pte., HSBC Ltd., Singapore Branch and J.P. Morgan Securities Asia Private Ltd. are the joint lead bookrunning managers.
Senior joint bookrunners were BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC.
Joint bookrunners were Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Santander US Capital Markets LLC.
Proceeds will be used for IBM’s general corporate purposes, including those of its subsidiaries.
The information technology and computer company based in Armonk, N.Y. The issuing subsidiary was incorporated in Singapore on Nov. 17, 2023.
| Issuer: | IBM International Capital Pte., Ltd.
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| Guarantor: | International Business Machines Corp.
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| Amount: | $5.5 billion
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| Issue: | Notes
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| Lead bookrunners: | Merrill Lynch (Singapore) Pte., Citigroup Global Markets Singapore Pte., Ltd., Goldman Sachs (Singapore) Pte., HSBC Ltd., Singapore Branch and J.P. Morgan Securities Asia Private Ltd.
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| Senior joint bookrunners: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC
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| Joint bookrunners: | Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Santander US Capital Markets LLC
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| Senior co-managers: | Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Truist Securities Inc.
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| Co-managers: | Blaylock Van, LLC, C.L. King & Associates, Inc. and Drexel Hamilton, LLC
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | In-house counsel and Drew & Napier LLC
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | Jan. 29
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| Settlement date: | Feb. 5
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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| 2026 notes
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| Amount: | $600 million
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| Maturity: | Feb. 5, 2026
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| Coupon: | 4.7%
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| Price: | 99.876
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| Yield: | 4.766%
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| Spread: | Treasuries plus 45 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps
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| Price talk: | Treasuries plus 60 bps area
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| Cusip: | 449276AA2
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| 2027 notes
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| Amount: | $500 million
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| Maturity: | Feb. 5, 2027
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| Coupon: | 4.6%
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| Price: | 99.842
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| Yield: | 4.657%
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| Spread: | Treasuries plus 55 bps
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| Call features: | Make-whole prior to Jan. 5, 2027 at Treasuries plus 10 bps; after at par
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| Price talk: | Treasuries plus 70 bps area
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| Cusip: | 449276AB0
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| 2029 notes
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| Amount: | $500 million
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| Maturity: | Feb. 5, 2029
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| Coupon: | 4.6%
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| Price: | 99.854
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| Yield: | 4.633%
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| Spread: | Treasuries plus 65 bps
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| Call features: | Make-whole prior to Jan. 5, 2029 at Treasuries plus 10 bps; after at par
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| Price talk: | Treasuries plus 80 bps area
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| Cusip: | 449276AC8
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| 2031 notes
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| Amount: | $500 million
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| Maturity: | Feb. 5, 2031
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| Coupon: | 4.75%
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| Price: | 99.77
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| Yield: | 4.789%
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| Spread: | Treasuries plus 75 bps
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| Call features: | Make-whole prior to Dec. 5, 2030 at Treasuries plus 15 bps; after at par
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| Price talk: | Treasuries plus 90 bps area
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| Cusip: | 449276AD6
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| 2034 notes
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| Amount: | $1 billion
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| Maturity: | Feb. 5, 2034
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| Coupon: | 4.9%
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| Price: | 99.75
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| Yield: | 4.932%
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| Spread: | Treasuries plus 85 bps
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| Call features: | Make-whole prior to Nov. 5, 2033 at Treasuries plus 15 bps; after at par
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| Price talk: | Treasuries plus 100 bps area
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| Cusip: | 449276AE4
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| 2044 notes
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| Amount: | $1 billion
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| Maturity: | Feb. 5, 2044
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| Coupon: | 5.25%
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| Price: | 99.596
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| Yield: | 5.283%
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| Spread: | Treasuries plus 85 bps
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| Call features: | Make-whole prior to Aug. 5, 2043 at Treasuries plus 15 bps; after at par
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| Price talk: | Treasuries plus 105 bps area
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| Cusip: | 449276AF1
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| 2054 notes
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| Amount: | $1.4 billion
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| Maturity: | Feb. 5, 2054
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| Coupon: | 5.3%
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| Price: | 99.435
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| Yield: | 5.338%
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| Spread: | Treasuries plus 100 bps
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| Call features: | Make-whole prior to Aug. 5, 2053 at Treasuries plus 15 bps; after at par
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| Price talk: | Treasuries plus 120 bps area
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| Cusip: | 449276AG9
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