FWP 1 a20-16871_3fwp.htm FWP

 

Filed Pursuant to Rule 433

Registration Number 333-230099

 

$1,250,000,000 1.700% Notes due 2027

$1,350,000,000 1.950% Notes due 2030

$650,000,000 2.850% Notes due 2040

$750,000,000 2.950% Notes due 2050

 

International Business Machines Corporation
April 30, 2020
Pricing Term Sheet

 

Issuer

 

International Business Machines Corporation

 

 

 

Issuer Ratings*

 

A2 / A (Moody’s/S&P)

 

 

 

Format

 

SEC Registered

 

 

 

Trade Date

 

April 30, 2020

 

 

 

Settlement Date**

 

May 7, 2020 (T+5)

 

 

 

Joint Bookrunning Managers

 

BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Santander Investment Securities Inc., SG Americas Securities, LLC and Wells Fargo Securities, LLC

 

 

 

Co-Managers

 

ING Financial Markets LLC, Lloyds Securities Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Academy Securities, Inc., Blaylock Van, LLC and Drexel Hamilton, LLC

 

 

 

 

 

 

 

 

 

Minimum Denomination

 

$100,000 and multiples of $1,000 in excess thereof

 

2027 Notes

 

2030 Notes

 

2040 Notes

 

2050 Notes

 

 

 

 

 

 

 

 

 

Size

 

$1,250,000,000

 

$1,350,000,000

 

$650,000,000

 

$750,000,000

 

 

 

 

 

 

 

 

 

Maturity

 

May 15, 2027

 

May 15, 2030

 

May 15, 2040

 

May 15, 2050

 

 

 

 

 

 

 

 

 

Interest Payment Dates

 

Semi-annually on May 15 and November 15

 

Semi-annually on May 15 and November 15

 

Semi-annually on May 15 and November 15

 

Semi-annually on May 15 and November 15

 

 

 

 

 

 

 

 

 

First Interest Payment Date

 

November 15, 2020

 

November 15, 2020

 

November 15, 2020

 

November 15, 2020

 

 

 

 

 

 

 

 

 

Coupon

 

1.700%

 

1.950%

 

2.850%

 

2.950%

 

 

 

 

 

 

 

 

 

Benchmark Treasury

 

0.625% due March 31, 2027

 

1.500% due February 15, 2030

 

2.375% due November 15, 2049

 

2.375% due November 15, 2049

 

 

 

 

 

 

 

 

 

Benchmark Treasury Yield

 

0.528%

 

0.641%

 

1.292%

 

1.292%

 

 

 

 

 

 

 

 

 

Spread to Benchmark Treasury

 

T + 120 bps

 

T + 135 bps

 

T + 160 bps

 

T + 170 bps

 

 

 

 

 

 

 

 

 

Yield to Maturity

 

1.728%

 

1.991%

 

2.892%

 

2.992%

 

 

Make-Whole Call

 

Prior to March 15, 2027 at T + 20 bps

 

Prior to February 15, 2030 at T + 20 bps

 

Prior to November 15, 2039 at T + 25 bps

 

Prior to November 15, 2049 at T + 25 bps

 

 

 

 

 

 

 

 

 

Par Call

 

On or after March 15, 2027

 

On or after February 15, 2030

 

On or after November 15, 2039

 

On or after November 15, 2049

 

 

 

 

 

 

 

 

 

Price to Public

 

99.815%

 

99.629%

 

99.365%

 

99.171%

 

 

 

 

 

 

 

 

 

Underwriting Discount

 

0.300%

 

0.400%

 

0.600%

 

0.750%

 

 

 

 

 

 

 

 

 

Day Count

 

30/360

 

30/360

 

30/360

 

30/360

 

 

 

 

 

 

 

 

 

CUSIP

 

459200 KH3

 

459200 KJ9

 

459200 KK6

 

459200 KL4

 

 

 

 

 

 

 

 

 

ISIN

 

US459200KH39

 

US459200KJ94

 

US459200KK67

 

US459200KL41

 

*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.

 

**We expect that delivery of the notes will be made to investors on or about May 7, 2020, which will be the fifth business day following the date of this final term sheet (such settlement being referred to as “T+5”). Under Rule 15c6-1 under the Securities Exchange Act of 1934, as amended, trades in the secondary market are required to settle in two business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade notes on the date of the prospectus supplement or the next two succeeding business days will be required, by virtue of the fact that the notes initially settle in T+5, to specify an alternate settlement arrangement at the time of any such trade to prevent a failed settlement. Purchasers of the notes who wish to trade the notes on the date of the prospectus supplement or the next two succeeding business days should consult their advisors.

 

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 BofA Securities, Inc. at +1 (800) 294-1322, Citigroup Global Markets Inc. at +1 (800) 831-9146, Credit Suisse Securities (USA) LLC at +1 (800) 221-1037, Deutsche Bank Securities Inc. at +1 (800) 503-4611, Goldman Sachs & Co. LLC at +1 (866) 471-2526, Santander Investment Securities Inc. at +1 (855) 403-3636, SG Americas Securities, LLC at +1 (800) 861-9789 and Wells Fargo Securities, LLC at +1 (800) 645-3751.

 

This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on April 30, 2020 relating to its Prospectus dated March 6, 2019.