Filed Pursuant to Rule 433
Registration Nos. 333-145104 and 333-145104-01
$3,500,000,000
Floating Rate Notes Due July 29, 2009
IBM International Group Capital LLC
International Business Machines Corporation
January 24, 2008
Pricing Term Sheet
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Issuer |
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IBM International Group Capital LLC |
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Guarantor |
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International Business Machines Corporation |
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Ratings |
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A1/A+/A+ (Moody’s/S&P/Fitch) |
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Format |
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SEC Registered |
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Ranking |
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Senior |
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Trade Date |
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January 24, 2008 |
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Settlement Date |
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January 29, 2008 |
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Size |
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$3,500,000,000 |
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Maturity |
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July 29, 2009 |
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Interest Payment Dates |
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Quarterly on January 29, April 29, July 29 and October 29 |
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First Payment Date |
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April 29, 2008 |
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Spread to LIBOR |
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Plus 34 bps |
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Designated LIBOR page |
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Reuters Screen LIBOR01 Page |
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Index Maturity |
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3 Months |
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Interest Reset Period |
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Quarterly |
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Interest Reset Dates |
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January 29, April 29, July 29 and October 29 |
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Initial Interest Rate |
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Three month LIBOR plus 34 bps, determined on the second London banking day prior to January 29, 2008 |
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Price to Public |
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100.00% |
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Underwriting Discount |
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0.10% |
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Price to Issuer |
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99.90% |
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Net Proceeds |
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$3,496,500,000 |
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Day Count |
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Actual/360, Modified Following Business Day |
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Minimum Denomination |
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$100,000 and increments of $1,000 |
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Bookrunners |
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Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc. and Morgan Stanley & Co. Incorporated |
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Co-Managers |
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Barclays Capital Inc.; Bear Stearns & Co. Inc.; BNP Paribas Securities Corp.; Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC |
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Billing and Delivering |
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Morgan Stanley & Co. Incorporated |
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CUSIP |
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44924E AC4 |
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ISIN |
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US44924EAC49 |
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 Deutsche Bank Securities Inc. at 1-800-503-4611, collect to J.P. Morgan Securities Inc. at 212-834-4533, Lehman Brothers Inc. at 1-888-603-5847 or Morgan Stanley & Co. Incorporated at 1-866-718-1649.
This pricing term sheet supplements the preliminary form of prospectus supplement issued by IBM International Group Capital LLC and International Business Machines Corporation on January 24, 2008 relating to their Prospectus dated August 3, 2007.
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