International Business Machines Corp. (IBM:US) obtained a record-low 1.625 percent coupon on seven-year dollar- denominated debt and tied an all-time low for three-year securities.
IBM’s $1.25 billion of notes due May 2020, which yield 67 basis points more than similar-maturity Treasuries, beat a 1.65 percent rate on $750 million of debt sold last July by semiconductor maker Texas Instruments Inc., according to data compiled by Bloomberg.
The largest computer-services provider also sold $1 billion of notes due in 2016 at a 0.45 percent coupon, matching a record-low for that maturity obtained by Apple Inc., Texas Instruments, Unilever Plc and Walt Disney Co., Bloomberg data show. The debt pays a relative yield of 25 basis points.
The bonds may be rated Aa3 by Moody’s Investors Service, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly.
IBM, based in Armonk, New York, last sold debt in February, issuing $1 billion each of two-year, floating-rate notes and 1.25 percent, five-year securities, Bloomberg data show.
Bank of America Corp., BNP Paribas SA, Royal Bank of Scotland Group Plc and Wells Fargo & Co. managed today’s offering.
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