Tags: ibm | corporate | bond | yield

IBM Sells $1.5 Billion of Debt as Corporate Yields Fall

Tuesday, 08 May 2012 04:53 PM EDT

International Business Machines Corp. sold $1.5 billion of debt in its second U.S. dollar-denominated offering this year, as corporate bond yields reach record lows.

IBM priced $900 million of 0.75 percent, three-year notes at a relative yield of 45 basis points more than similar- maturity Treasuries, and $600 million of 1.875 percent, seven-year bonds at a 65 basis-points spread, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.

In February, when IBM last issued dollar-denominated debt, it obtained a record-low coupon on three-year notes, selling $1.5 billion of 0.55 percent securities at 42 basis points more than Treasuries, Bloomberg data show.

The world’s biggest computer-services provider will use the proceeds for general corporate purposes, which could include debt repayments, preferred stock redemptions, possible acquisitions or expansion, according to a filing dated today.

The bonds, which are SEC registered, are expected to be rated Aa3 by Moody’s Investors Service, Bloomberg data show. Barclays Plc, HSBC Holdings Plc, JPMorgan Chase & Co., and Royal Bank of Scotland Group Plc managed the sale.

IBM is offering bonds as company borrowing costs have reached record lows. Investment-grade corporate bond yields fell to 3.340 percent May 4, the least in data going back to 1986, according to the Bank of America Merrill Lynch U.S. Corporate Master Index.

In February, the Armonk, New York-based company also sold $1 billion of 1.25 percent, five-year bonds, at a 62 basis points spread, Bloomberg data show.

© Copyright 2025 Bloomberg News. All rights reserved.


241
2012-53-08
Tuesday, 08 May 2012 04:53 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Newsmax2 Live
 
On Now:6:00a ET • Choose Life: It’s Worth It
Coming Up:7:00a ET • First Edition
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© 2025 Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved