By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., July 21 – International Business Machines Corp. sold $3.25 billion of notes in four tranches (A-) on Wednesday, according to a FWP filing with the Securities and Exchange Commission.
The notes sold are $1 billion 4% notes due 2025, $750 million 4.15% notes due 2027, $750 million 4.4% notes due 2032 and $750 million 4.9% notes due 2052.
The 2025 notes priced at par with a yield of 4% at a spread of 75 basis points over Treasuries. Price talk was approximately 20 bps higher, in the 95 bps area.
The series has a make-whole call prior to the June 27, 2025 maturity date at Treasuries plus 12.5 bps.
The 2027 notes priced at 99.87 with a yield of 4.179% at a spread of 100 bps over Treasuries. Price talk was in the 120 bps area.
The 2027 series has a make-whole call prior to June 27, 2027 at Treasuries plus 15 bps. For the final month before maturity, they will be callable at par.
The 2032 notes priced at 99.281 with a yield of 4.49% at a spread of 145 bps to Treasuries, versus talk in the 165 bps area.
They have a make-whole call prior to April 27, 2032 at Treasuries plus 25 bps. For the last three months, they will be callable at par.
The 2052 notes priced at 98.608 with a yield of 4.99% at a spread of 180 bps against Treasuries. Talk was in the 205 bps area.
The longest-dated notes have a make-whole call prior to Jan. 27, 2052 at Treasuries plus 30 bps. For the last six months, they will be callable at par.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC are the joint bookrunning managers.
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.
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| Amount: | $3.25 billion
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| Issue: | Notes
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| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC
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| Co-managers: | BBVA Securities Inc., PNC Capital Markets LLC, SG Americas Securities, LLC, Bancroft Capital, LLC and Drexel Hamilton, LLC
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | In-house
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| Counsel to bookrunners: | Davis Polk & Wardwell LLP
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| Trade date: | July 20
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| Settlement date: | July 27
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| Rating: | S&P: A-
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| Distribution: | SEC registered
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| 2025 notes
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| Amount: | $1 billion
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| Maturity: | July 27, 2025
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| Coupon: | 4%
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| Price: | Par
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| Yield: | 4%
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| Spread: | Treasuries plus 75 bps
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| Call features: | Make-whole call prior to maturity date at Treasuries plus 12.5 bps
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| Price talk: | Treasuries plus 95 bps area
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| Cusip: | 459200KS9
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| 2027 notes
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| Amount: | $750 million
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| Maturity: | July 27, 2027
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| Coupon: | 4.15%
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| Price: | 99.87
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| Yield: | 4.179%
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| Spread: | Treasuries plus 100 bps
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| Call features: | Make-whole call prior to June 27, 2027 at Treasuries plus 15 bps and after at par
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| Price talk: | Treasuries plus 120 bps area
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| Cusip: | 459200KT7
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| 2032 notes
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| Amount: | $750 million
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| Maturity: | July 27, 2032
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| Coupon: | 4.4%
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| Price: | 99.281
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| Yield: | 4.49%
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| Spread: | Treasuries plus 145 bps
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| Call features: | Make-whole call prior to April 27, 2032 at Treasuries plus 25 bps and after at par
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| Price talk: | Treasuries plus 165 bps area
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| Cusip: | 459200KU4
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| 2052 notes
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| Amount: | $750 million
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| Maturity: | July 27, 2052
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| Coupon: | 4.9%
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| Price: | 98.608
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| Yield: | 4.99%
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| Spread: | Treasuries plus 180 bps
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| Call features: | Make-whole call prior to Jan. 27, 2052 at Treasuries plus 30 bps and after at par
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| Price talk: | Treasuries plus 205 bps area
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| Cusip: | 459200KV2
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