International Business Machines Corp., the largest computer-services provider, is planning to offer $2.15 billion of dollar-denominated bonds in a two-part sale.
The information technology business may issue $650 million of two-year floating-rate notes to yield 3 basis points more than the three-month London interbank offered rate and $1.5 billion of 10-year fixed-rate securities as soon as today, according to a person with knowledge of the transaction. The debt, the first to be offered by the company since May 2, may be rated Aa3 by Moody’s Investors Service.
IBM’s $1 billion of 1.875 percent, 10-year debentures, which it issued in July 2012 to yield 65 basis points more than similar-maturity Treasurys, traded on July 25 at 89.99 cents on the dollar to yield 3.16 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Citigroup Inc., Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley are managing the offering for the Armonk, New York-based company, said the person, who asked not to be identified because terms aren’t set. Proceeds will be used for general corporate purposes.
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