Filed Pursuant to Rule 433
Registration Number 333-168333
International Business Machines Corporation
February 5, 2013
Pricing Term Sheet
1.250% Notes due 2018
Floating Rate Notes due 2015
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Issuer |
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International Business Machines Corporation | ||||
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Expected Issuer Ratings* |
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Aa3/AA-/A+ (Moody’s/S&P/Fitch) | ||||
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Format |
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SEC Registered | ||||
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Trade Date |
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February 5, 2013 | ||||
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Settlement Date |
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(T+3); February 8, 2013 | ||||
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Joint Bookrunning Managers |
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Barclays Capital Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC | ||||
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Co-Managers |
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Muriel Siebert & Co., Inc., Samuel A. Ramirez & Company, Inc., The Williams Capital Group, L.P., U.S. Bancorp Investments, Inc. | ||||
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2018 Notes |
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Floating Rate Notes | ||
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Size |
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$1,000,000,000 |
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$1,000,000,000 | ||
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Maturity |
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February 8, 2018 |
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February 4, 2015 | ||
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Interest Payment Dates |
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February 8 and August 8 |
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February 4, May 4, August 4 and November 4 | ||
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First Interest Payment Date |
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August 8, 2013 |
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May 4, 2013 | ||
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Coupon |
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1.250% |
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Spread to LIBOR: |
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-2 bps |
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Designated LIBOR page: |
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Reuters Screen LIBOR01 Page |
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Index Maturity: |
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3 Months |
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Interest Reset Period: |
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Quarterly |
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Interest Reset Dates: |
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February 4, May 4, August 4 and November 4 |
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Initial Interest Rate: |
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Three month LIBOR minus 2 bps, determined on the second London banking day prior to February 8, 2013 |
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Benchmark Treasury |
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0.875% due January 31, 2018 |
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Not Applicable | ||
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Benchmark Treasury Yield |
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0.875% |
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Not Applicable | ||
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Spread to Benchmark Treasury |
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T + 47 bps |
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Not Applicable | ||
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Yield to Maturity |
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1.345% |
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Not Applicable | ||
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Make-Whole Call |
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T + 10 bps |
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Not Applicable | ||
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Price to Public |
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99.542% |
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100% | ||
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Underwriting Discount |
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0.250% |
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0.100% | ||
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Day Count |
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30/360 |
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Act/360, Modified Following Business Day | ||
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Minimum Denomination |
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$100,000 and multiples of $1,000 |
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$100,000 and multiples of $1,000 | ||
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CUSIP |
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459200 HK0 |
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459200 HJ3 | ||
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ISIN |
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US459200HK05 |
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US459200HJ32 | ||
*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 Barclays Capital Inc. at (888) 603-5847 (toll-free), HSBC Securities (USA) Inc. at (866) 811-8049 (toll-free), Mizuho Securities USA Inc. at (866) 271-7403 (toll-free) and RBC Capital Markets, LLC at (866) 375-6829 (toll-free).
This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on February 5, 2013 relating to its Prospectus dated July 27, 2010.