Filed Pursuant to Rule 433
Registration No. 333-145104
International Business Machines Corporation
Pricing Term Sheet
November 3, 2009
2.100% Notes due 2013
Floating Rate Notes due 2011
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Issuer: |
International Business Machines Corporation |
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Ratings: |
A1/A+/A+ (Moody’s/S&P/Fitch) |
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Format: |
SEC Registered |
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Ranking: |
Senior |
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Trade Date: |
November 3, 2009 |
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Settlement Date: |
(T+3); November 6, 2009 |
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Net Proceeds: |
$ 1,996,237,500 |
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Bookrunners: |
Citigroup Global
Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. |
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Co-Managers: |
RBC Capital Markets Corporation, RBS Securities Inc., Wells Fargo Securities, LLC, The Williams Capital Group, L.P. |
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Title: |
2013 Notes |
Floating Rate Notes |
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Size: |
US$1,250,000,000 |
US$750,000,000 |
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Maturity: |
May 6, 2013 |
November 4, 2011 |
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Interest Payment Dates: |
May 6 and November 6 |
Quarterly on February 4, May 4, August 4, November 4 |
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First Payment Date: |
May 6, 2010 |
February 4, 2010 |
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Day Count Convention: |
30/360 |
Act/360, Modified Following |
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Coupon: |
2.100% |
Spread to LIBOR: Designated LIBOR page: Index Maturity: Interest Reset Period: Interest Reset Dates:
Initial Interest Rate: |
4bps Reuters Screen LIBOR01 Page 3 Months Quarterly February 4, May 4, August 4 and November 4 Three month LIBOR plus 4 bps, determined on the second London banking day prior to November 6, 2009 |
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Price to Public: |
99.919% |
100.000% |
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Underwriting Discount: |
0.160% |
0.100% |
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Price to Issuer: |
99.759% |
99.900% |
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Spread to Benchmark Treasury: |
T+70 bps |
Not Applicable |
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Yield to Maturity: |
2.124% |
Not Applicable |
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Make-Whole Call: |
T+10 bps |
Not Applicable |
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CUSIP: |
459200 GR6 |
459200 GQ8 |
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ISIN: |
US459200GR66 |
US459200GQ83 |
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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 Citigroup Global Markets Inc. at 1-877-858-5407, HSBC Securities (USA) Inc. at 1-866-811-8049, or Morgan Stanley & Co. Incorporated at 1-866-718-1649.
This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on November 3, 2009 relating to their Prospectus dated August 3, 2007.