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.