Filed Pursuant to Rule 433

Registration Number 333-212685

 

€1,750,000,000 0.375% Notes Due 2023

€1,000,000,000 0.875% Notes Due 2025

€1,000,000,000 1.250% Notes Due 2027

€1,250,000,000 1.750% Notes Due 2031
International Business Machines Corporation
January 24, 2019
Pricing Term Sheet

 

Issuer

 

International Business Machines Corporation

Issuer Legal Entity Identifier

 

VGRQXHF3J8VDLUA7XE92

Issuer Ratings*

 

A1 / A / A (Moody’s/S&P/Fitch)

Format

 

SEC Registered

Form

 

Registered Form

Trade Date

 

January 24, 2019

Settlement Date**

 

January 31, 2019 (T+5)

Listing

 

Application will be made to list the Notes on the New York Stock Exchange

Joint Bookrunning Managers

 

Barclays Bank PLC
BNP Paribas
Citigroup Global Markets Limited
Deutsche Bank AG, London Branch
J.P. Morgan Securities plc
UniCredit Bank AG
Banco Santander S.A.
Commerzbank Aktiengesellschaft
Mizuho International plc
MUFG Securities EMEA plc
Société Générale
The Toronto-Dominion Bank

Co-Managers

 

Credit Suisse Securities (Europe) Limited
ING Bank N.V., Belgian Branch
U.S. Bancorp Investments, Inc.

 

 

2023 Notes

 

2025 Notes

 

2027 Notes

 

2031 Notes

Size

 

€1,750,000,000

 

€1,000,000,000

 

€1,000,000,000

 

€1,250,000,000

Maturity

 

January 31, 2023

 

January 31, 2025

 

January 29, 2027

 

January 31, 2031

Interest Payment Date

 

January 31 of each year

 

January 31 of each year

 

January 29 of each year

 

January 31 of each year

First Payment Date

 

January 31, 2020

 

January 31, 2020

 

January 29, 2020

 

January 31, 2020

Benchmark Bund

 

OBL 0.000% due October 7, 2022 #176

 

DBR 1.000% due August 15, 2024

 

DBR 0.000% due August 15, 2026

 

DBR 0.250% due February 15, 2029

Benchmark Bund Yield

 

-0.485%

 

-0.298%

 

-0.095%

 

0.181%

Spread to Benchmark Bund

 

+97.4 bps

 

+127.7 bps

 

+141.2 bps

 

+166.7 bps

Mid Swaps Yield

 

0.039%

 

0.279%

 

0.517%

 

0.898%

Spread to Mid Swaps

 

+45 bps

 

+70 bps

 

+80 bps

 

+95 bps

Yield to Maturity

 

0.489%

 

0.979%

 

1.317%

 

1.848%

Coupon

 

0.375% (payable annually)

 

0.875% (payable annually)

 

1.250% (payable annually)

 

1.750% (payable annually)

Make-Whole Call

 

 

 

 

 

 

 

 

Reference Bund

 

OBL 0.000% due October 7, 2022 #176

 

DBR 1.000% due August 15, 2024

 

DBR 0.000% due August 15, 2026

 

DBR 0.250% due February 15, 2029

Spread to Reference Bund

 

+15 bps

 

+20 bps

 

+25 bps

 

+25 bps

Price to Public

 

99.550%

 

99.397%

 

99.495%

 

98.954%

Underwriting Discount

 

0.200%

 

0.275%

 

0.325%

 

0.425%

Price to Issuer

 

99.350%

 

99.122%

 

99.170%

 

98.529%

Day Count

 

Actual / Actual (ICMA)

 

Actual / Actual (ICMA)

 

Actual / Actual (ICMA)

 

Actual / Actual (ICMA)

 


 

Minimum Denomination

 

€100,000 and integral multiples of €1,000 in excess thereof

 

€100,000 and integral multiples of €1,000 in excess thereof

 

€100,000 and integral multiples of €1,000 in excess thereof

 

€100,000 and integral multiples of €1,000 in excess thereof

CUSIP / ISIN / Common Code

 

459200 JS1 / XS1944456018 / 194445601

 

459200 JT9 / XS1944456109 / 194445610

 

459200 JU6 / XS1945110606  / 194511060

 

459200 JV4 / XS1945110861 / 194511086

Target Market

 

Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA.

 


*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 January 31, 2019, 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 Barclays Bank PLC at +1-888-603-5847, BNP Paribas toll-free at +1-800-854-5674, Citigroup Global Markets Limited toll-free at +1-800-831-9146, Deutsche Bank AG, London Branch toll-free at +1-800-503-4611, J.P. Morgan Securities plc collect at +44-207-134-2468, or UniCredit Bank AG at +49 89 378 15921.

 

This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on January 24, 2019 relating to its Prospectus dated July 26, 2016.