Filed Pursuant to Rule 433

Registration Number 333-190160

 

International Business Machines Corporation

October 31, 2014

Pricing Term Sheet

 

Floating Rate Notes due 2021

 

Issuer

 

International Business Machines Corporation

 

 

 

Expected Issuer Ratings*

 

Aa3/AA-/A+ (Moody’s/S&P/Fitch)

 

 

 

Format

 

SEC Registered

 

 

 

Trade Date

 

October 31, 2014

 

 

 

Settlement Date

 

November 6, 2014 (T+4)

 

 

 

Issue Date

 

November 6, 2014

 

 

 

Sole Bookrunning Manager

 

J.P. Morgan Securities LLC

 

 

 

Size

 

$1,100,000,000

 

 

 

Status

 

Senior Unsecured, Unsubordinated

 

 

 

Maturity

 

November 6, 2021

 

 

 

Interest Payment Dates

 

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

 

 

 

First Interest Payment Date

 

February 6, 2015

 

 

 

Spread to LIBOR

 

+ 58bps

 

 

 

Designated LIBOR Page

 

Reuters Screen LIBOR01 Page

 

 

 

Index Maturity

 

3 Months

 

 

 

Interest Reset Period

 

Quarterly

 

 

 

Business Days

 

New York & London

 

 

 

Interest Reset Dates

 

February 6, May 6, August 6 and November 6

 

 

 

Initial Interest Rate

 

Three month LIBOR plus 58bps, determined on November 4, 2014

 

 

 

Interest Accrual Commencement Date

 

November 6, 2014

 

 

 

Make-Whole Call

 

Not Applicable

 

 

 

Par Call

 

Not Applicable

 

 

 

Price to Public

 

100.000%

 

 

 

Underwriting Discount

 

0.25%

 

 

 

Redemption Price

 

100.000%

 

 

 

Day Count

 

Actual/360, Adjusted, Modified Following Business Day

 

 

 

Minimum Denomination

 

$100,000 and multiples of $1,000

 

 

 

CUSIP

 

459200 HX2

 

 

 

ISIN

 

US459200HX26

 

 

 

Settlement

 

IBM will deliver the Notes to the underwriter at the closing of this offering when the underwriter pays IBM the purchase price of the Notes. The underwriting agreement provides that the closing will occur on November 6, 2014, which is four business days after the date of the prospectus supplement. Rule 15c6-1 under the Securities Exchange Act of 1934 generally requires that securities trades in the secondary market settle in three business days, unless the parties to a trade expressly agree otherwise.

 

Certain investors have indicated an interest in purchasing a significant principal amount of the securities, which could adversely impact liquidity and the trading market for these securities.

 



 


*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, the underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC at (212) 834-4533 (collect).

 

This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on October 31, 2014 relating to its Prospectus dated July 26, 2013.