Bloomberg News

IBM Issues $2.15 Billion of Bonds With Two-, 10-Year Offering

July 29, 2013

International Business Machines Corp. (IBM:US), the largest computer-services provider, raised $2.15 billion in a two-part bond sale.

The information technology business issued $650 million of two-year floating-rate notes to yield 3 basis points more than the three-month London interbank offered rate and $1.5 billion of 3.375 percent, fixed-rate securities due 2023 priced to yield 83 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The bonds, the first to be offered by the company since May 2, may be rated Aa3 by Moody’s Investors Service, the data show.

IBM’s $1 billion of 1.875 percent, 10-year debentures, which it issued in July 2012 to yield 65 basis points more than government bonds, traded on July 25 at 89.99 cents on the dollar to yield 3.16 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Citigroup Inc., Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley managed the offering for the Armonk, New York-based company, Bloomberg data show. Proceeds will be used for general corporate purposes.

Libor is the rate at which banks say they can borrow in dollars from each other.

To contact the reporters on this story: Sarika Gangar in New York at sgangar@bloomberg.net; Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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    (International Business Machines Corp)
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