IBM Announces Debt Exchange Offers

IBM

today announced that it has commenced offers to exchange any and all of its 7.125 percent debentures due 2096 any and all of its 8.000 percent notes due 2038 and up to $800,000,000 aggregate principal amount of its 5.600 percent notes due 2039 for a new series of 4.000 percent notes due 2042 and cash in the amounts described below. To encourage holders of the 8.000 percent notes and 5.600 percent notes to tender early, IBM is offering an early exchange premium to holders who validly tender such notes at or before 5:00 p.m. EST, on Monday, June 4, 2012. The exchange offers expire at 12:00 midnight EST, on Monday, June 18, 2012 . Holders of old notes may validly withdraw tenders of old notes at or before 5:00 p.m. EST, on Monday, June 4, 2012. IBM is conducting the exchange offers to retire high coupon long-dated debt in a favorable interest rate environment. The terms and conditions of the exchange offers are described in IBM's exchange circular dated May 21, 2012.