By Devika Patel
Knoxville, Tenn., Feb. 2 – IBM Credit LLC priced $2 billion of fixed- and floating-rate notes (A1/A+/A+) in three tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
IBM Credit sold $450 million of three-year floating-rate notes at par to yield Libor plus 16 basis points.
The company also sold $800 million of 2.65% three-year fixed-rate notes at 99.951 to yield 2.667%, or 35 bps over Treasuries.
IBM Credit also sold $750 million of 3% five-year fixed-rate notes at 99.949 to yield 3.011%, or 45 bps over Treasuries.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes.
The company is a subsidiary of International Business Machines Corp., an information technology and computer company based in Armonk, N.Y.
| Issuer: | IBM Credit LLC
|
| Amount: | $2 billion
|
| Description: | Fixed- and floating-rate notes
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | SMBC Nikko Securities America, Inc. and Commerz Markets LLC
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $450 million
|
| Maturity: | Feb. 5, 2021
|
| Coupon: | Libor plus 16 bps
|
| Price: | Par
|
| Yield: | Libor plus 16 bps
|
| Call: | Non-callable
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $800 million
|
| Maturity: | Feb. 5, 2021
|
| Coupon: | 2.65%
|
| Price: | 99.951
|
| Yield: | 2.667%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole call at Treasuries plus 5 bps
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 6, 2023
|
| Coupon: | 3%
|
| Price: | 99.949
|
| Yield: | 3.011%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
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