3rd UPDATE: IBM Sets Record Low Coupons In $2.5 Billion Bond Sale

International Business Machines (IBM) attained record-low coupons in its $2.5 billion bond sale of three- and five-year notes in the U.S. credit markets Wednesday, according to data provider Dealogic.

IBM priced $1.5 billion of 0.55% coupon, three-year notes priced to yield 0.715%, or 42 basis points over Treasurys, and $1 billion of 1.25% coupon, five-year notes at 1.342%, or 62 basis points over Treasurys.

The previous record for a three-year bond priced in the U.S. market was a 0.60% coupon, as sold on Nov. 3 by Colgate-Palmolive Co. (CL), which paid a 0.729% yield. The prior record for a five-year coupon was 1.30%, also sold Nov. 3 by Colgate, which paid a 1.413% yield.

The anticipated ratings for the deal are Aa3 from Moody's Investors Service and A-plus from Standard & Poor's and Fitch Ratings. The deal is registered with the Securities and Exchange Commission.

IBM is raising funds for general corporate purposes.

Bank of America Merrill Lynch, Credit Suisse, Mizuho, Morgan Stanley, RBC Capital Markets, and Wells Fargo Securities were lead underwriters on the sale.

-By Patrick McGee, Dow Jones Newswires; 212-416-2382;

patrick.mcgee@dowjones.com

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