The biggest computer services provider, International Business Machine Corp., was able to raise US$2.15 billion in a two-part sale of bonds.
Two-year floating rate notes worth US$650 million were issued by IBM to generate 3 basis points higher than the London interbank's rate for three months. IBM also issued US$1.5 billion of 3.375% fixed-rate securities to bring in 83 basis points higher than the same-maturity Treasuries. According to the data from Bloomberg, these would be due by 2023. The data showed that the bonds would be rated Aa3 by Moody's Investors Service. Also, these would be the first bonds offered by the information technology business since May 2.
The companies that managed the offering of IBM were Citigroup Inc., Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley. IBM would utilize the proceeds for general corporate purposes.
IBM currently targets 50% profits from its software and cloud computing technology. The company's hardware sales made up only 14% of its earnings in 2012, down from 2000's 35% record. IBM's latest activities encouraged investors to keep the company in their portfolios. It also gave assurance about the company's growth.
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