By Andrea Heisinger
New York, Dec. 6 - International Business Machines Corp. priced $1 billion of 2% five-year notes on Monday to yield Treasuries plus 55 basis points, an informed source said.
The notes (Aa3/A+/A+) were talked in the 55 bps area and priced in line with talk.
The notes had a dollar price of 99.678 to yield 2.067%.
There is a make-whole call of Treasuries plus 15 bps.
Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. were the bookrunners.
Proceeds are going toward general corporate purposes.
The company's last sale was on Aug. 2 when it sold $1.5 billion of three-year notes with a record-low coupon of 1%. That record was later broken by Wal-Mart Stores Inc. and Coca-Cola Co., which each priced three-year notes at a borrowing rate of 0.75%.
The computer and IT company is based in Armonk, N.Y.
| Issuer: | International Business Machines Corp.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 5, 2016
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 2%
|
| Price: | 99.678
|
| Yield: | 2.067%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A+
|
| Fitch: A+
|
| Price talk: | 55 bps area
|
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