Filed Pursuant to Rule
433
Registration Nos. 333-145104 and 333-145104-01
$1,500,000,000
5.05% Notes Due 2012
IBM International Group Capital LLC
guaranteed by
International Business Machines Corporation
October 17, 2007
Pricing Term Sheet
|
Issuer |
|
IBM International Group Capital LLC |
|
Guarantor |
|
International Business Machines Corporation |
|
Ratings |
|
A1/A+/A+ (Moody’s/S&P/Fitch) |
|
Size |
|
$1,500,000,000 |
|
Trade Date |
|
October 17, 2007 |
|
Settlement Date |
|
October 22, 2007 |
|
Maturity |
|
October 22, 2012 |
|
Interest Payment Dates |
|
April 22 and October 22, commencing April 22, 2008 |
|
Benchmark Treasury |
|
4.25% due September 30, 2012 |
|
Benchmark Treasury Yield |
|
4.198% |
|
Spread to Benchmark Treasury |
|
+87 basis points |
|
Yield to Maturity |
|
5.068% |
|
Coupon |
|
5.05% per annum, accruing from October 22, 2007 |
|
Make-Whole Call |
|
T+15 basis points |
|
Price to Public |
|
99.921% |
|
Underwriting Discount |
|
0.25% |
|
Use of Proceeds |
|
For general corporate purposes, which may include |
|
Minimum Denomination |
|
$100,000 and increments of $1,000 |
|
Bookrunners |
|
Bear Stearns & Co. Inc., Deutsche Bank
Securities Inc., |
|
Billing and Delivering |
|
Morgan Stanley & Co. Incorporated |
|
CUSIP |
|
44924E AB6 |
|
ISIN |
|
US44924EAB65 |
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 and Guarantor have filed a joint 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 and the Guarantor have filed with the SEC for more complete information about the Issuer, the Guarantor 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 Guarantor, any underwriter or any dealer participating in the Offering will arrange to send you the prospectus if you request it by calling Bear Stearns & Co. Inc. toll free at 1-866-803-9204, Deutsche Bank Securities Inc. toll free at 1-800-503-4611, Lehman Brothers Inc. toll free at 1-888-603-5847, or Morgan Stanley & Co. Incorporated toll free 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 October 17, 2007 relating to their Prospectus dated August 3, 2007.