Filed Pursuant to Rule 433

Registration Number 333-190160

 

International Business Machines Corporation
February 3, 2015
Pricing Term Sheet

 

Floating Rate Notes due 2018

1.125% Notes due 2018

 

Issuer

 

International Business Machines Corporation

 

 

 

Expected Issuer Ratings*

 

Aa3/AA-/A+ (Moody’s/S&P/Fitch)

 

 

 

Format

 

SEC Registered

 

 

 

Trade Date

 

February 3, 2015

 

 

 

Settlement Date

 

February 6, 2015 (T+3)

 

 

 

Joint Book-Running Managers

 

Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mitsubishi UFJ Securities (USA), Inc. and Wells Fargo Securities, LLC

 

 

 

Co-Managers

 

PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., Blaylock Beal Van, LLC and Lebenthal & Co., LLC

 

 

 

 

 

 

 

 

 

 

2018 Floating Rate Notes

 

2018 Notes

 

 

 

 

 

Size

 

$500,000,000

 

$1,500,000,000

 

 

 

 

 

Maturity

 

February 6, 2018

 

February 6, 2018

 

 

 

 

 

Interest Payment Dates

 

Quarterly on February 6, May 6, August 6 and November 6

 

February 6 and August 6

 

 

 

 

 

First Interest Payment Date

 

May 6, 2015

 

August 6, 2015

 

 

 

 

 

Coupon

 

Spread to LIBOR: + 19 bps

 

Designated LIBOR page: Reuters Screen LIBOR01 Page

 

Index Maturity: 3 Months

 

Interest Reset Period: Quarterly

 

Interest Reset Dates: February 6, May 6, August 6 and November 6

 

Initial Interest Rate: Three month LIBOR plus 19 bps, determined on February 4, 2015

 

1.125%

 

 

 

 

 

Benchmark Treasury

 

Not Applicable

 

0.875% due January 15, 2018

 

 

 

 

 

Benchmark Treasury Yield

 

Not Applicable

 

0.829%

 

 

 

 

 

Spread to Benchmark Treasury

 

Not Applicable

 

T + 40 bps

 

 

 

 

 

Yield to Maturity

 

Not Applicable

 

1.229%

 

 

 

 

 

Make-Whole Call

 

Not Applicable

 

T + 7.5 bps

 

 

 

 

 

Par Call

 

Not Applicable

 

Not Applicable

 

 

 

 

 

Price to Public

 

100%

 

99.695%

 

 

 

 

 

Underwriting Discount

 

0.15%

 

0.15%

 

 

 

 

 

Day Count

 

Actual/360, Modified Following Business Day

 

30/360

 



 

Minimum Denomination

 

$100,000 and multiples of $1,000

 

$100,000 and multiples of $1,000

 

 

 

 

 

CUSIP

 

459200 JA0

 

459200 HZ7

 

 

 

 

 

ISIN

 

US459200JA05

 

US459200HZ73

 


*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. toll-free at 1-800-831-9146, Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-294-1322, Mitsubishi UFJ Securities (USA), Inc. toll-free at 1-877-649-6848  and Wells Fargo Securities, LLC toll-free at 1-800-645-3751.

 

This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on February 3, 2015 relating to its prospectus dated July 26, 2013.