IBM gets $2.5 billion 364-day revolver, amends two credit agreements

By Wendy Van Sickle

Columbus, Ohio, July 2 – International Business Machines Corp. and IBM Credit entered on Thursday into a new $2.5 billion 364-day revolving credit agreement, amended the existing $2.5 billion three-year credit agreement to extend it to July 20, 2023 and amended the existing $10.25 billion five-year credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The new 364-day revolver matures on July 1, 2021.

Borrowings will bear interest at Libor or Euribor plus 87.5 basis points.

Funds borrowed may be used for general corporate purposes.

JPMorgan Chase Bank, NA, BNP Paribas Securities Corp., Citibank, NA and Royal Bank of Canada are joint lead arrangers and joint bookrunners for the new agreement, with JPMorgan as administrative agent, BNP Paribas, Citibank, RBC and Mizuho Bank, Ltd. as syndication agents and Barclays Bank plc, Banco Santander, SA, Bank of America, NA, Deutsche Bank Securities Inc., HSBC Bank USA, NA, Societe Generale and Wells Fargo Bank, NA as documentation agents.

The three-year amendment also modifies some of the minimum interest rate spreads applicable to future borrowings.

The five-year amendment permits IBM to request during a set period in the year 2021 an extension of the maturity date, currently July 20, 2024, by two years.

The information technology and computer company is based in Armonk, N.Y.

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