FWP 1 a10-21406_3fwp.htm FWP

 

Filed Pursuant to Rule 433

Registration Number 333-168333

 

$1,000,000,000
2.000% Notes Due 2016
International Business Machines Corporation
December 6, 2010
Pricing Term Sheet

 

Issuer

 

International Business Machines Corporation

Expected Issuer Ratings

 

Aa3/A+/A+ (Moody’s/S&P/Fitch)

Format

 

SEC Registered

Trade Date

 

December 6, 2010

Settlement Date

 

December 9, 2010

Size

 

$1,000,000,000

Maturity

 

January 5, 2016

Interest Payment Dates

 

July 5 and January 5

First Payment Date

 

July 5, 2011

Benchmark Treasury

 

1.375% due November 30, 2015

Benchmark Treasury Yield

 

1.517%

Spread to Benchmark Treasury

 

T + 55 bps

Yield to Maturity

 

2.067%

Coupon

 

2.000%

Make-Whole Call

 

T + 15 bps

Price to Public

 

99.678%

Underwriting Discount

 

0.25%

Price to Issuer

 

99.428%

Day Count

 

30/360

Minimum Denomination

 

$100,000 and multiples of $1,000

Bookrunners

 

Credit Suisse Securities (USA) LLC

Deutsche Bank Securities Inc.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Morgan Stanley & Co. Incorporated

Co-Managers

 

CastleOak Securities, L.P.

HSBC Securities (USA) Inc.

Lebenthal & Co., LLC

Mizuho Securities USA Inc.

CUSIP

 

459200 GU9

ISIN/Common Code

 

US459200GU95

 

Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.  You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.  Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Credit Suisse Securities (USA) LLC toll free at 800-221-1037, Deutsche Bank Securities Inc. toll free at 800-503-4611, Merrill Lynch, Pierce, Fenner & Smith Incorporated toll free at 800-294-1322, or Morgan Stanley & Co. Incorporated toll free at 866-718-1649.

 

This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on December 6, 2010 relating to its Prospectus dated July 27, 2010.