IBM Issues Over $7 Billion in Debt

TL;DR

IBM just dropped over $7B in new debt across multiple maturities.

AI Summary

On June 17, 2024, International Business Machines Corp. (IBM) entered into a material definitive agreement related to the issuance of various series of notes and debentures. This includes $1.125 billion in debentures due 2096, $1.125 billion in notes due 2024, $875 million in notes due 2025, $1.5 billion in notes due 2029, $1.25 billion in notes due 2034, $1.2 billion in notes due 2040, $700 million in debentures due 2025, and $300 million in notes due 2026.

Why It Matters

IBM's issuance of significant debt indicates potential funding for operations, acquisitions, or refinancing existing obligations, impacting its capital structure and future financial flexibility.

Risk Assessment

Risk Level: medium — The issuance of substantial debt increases financial leverage and interest expense for IBM.

Key Numbers

• $1.125B — Debentures Due 2096 (Part of a large debt issuance)
• $1.125B — Notes Due 2024 (Part of a large debt issuance)
• $875M — Notes Due 2025 (Part of a large debt issuance)
• $1.5B — Notes Due 2029 (Part of a large debt issuance)
• $1.25B — Notes Due 2034 (Part of a large debt issuance)
• $1.2B — Notes Due 2040 (Part of a large debt issuance)
• $700M — Debentures Due 2025 (Part of a large debt issuance)
• $300M — Notes Due 2026 (Part of a large debt issuance)

Key Players & Entities

• INTERNATIONAL BUSINESS MACHINES CORP (company) — Filer
• 2024-06-17 (date) — Date of Agreement
• $1.125 billion (dollar_amount) — Debentures Due 2096
• $1.125 billion (dollar_amount) — Notes Due 2024
• $875 million (dollar_amount) — Notes Due 2025
• $1.5 billion (dollar_amount) — Notes Due 2029
• $1.25 billion (dollar_amount) — Notes Due 2034
• $1.2 billion (dollar_amount) — Notes Due 2040
• $700 million (dollar_amount) — Debentures Due 2025
• $300 million (dollar_amount) — Notes Due 2026

FAQ

Key Financial Figures

• $2.5 billion — ) extended the maturity of the existing $2.5 billion Three-Year Credit Agreement dated as of
• $7.5 billion — ) extended the maturity of the existing $7.5 billion Five-Year Credit Agreement dated as of
• $2,500,000,000 — n Date Extension dated June 17, 2024 to $2,500,000,000 Three-Year Credit Agreement dated as of
• $7,500,000,000 — n Date Extension dated June 17, 2024 to $7,500,000,000 Five-Year Credit Agreement dated as of

Filing Documents

• form8-k.htm (8-K) — 82KB
• ex10-1.htm (EX-10.1) — 33KB
• ex10-2.htm (EX-10.2) — 34KB
• 0000950157-24-000918.txt ( ) — 493KB
• ibm-20240617.xsd (EX-101.SCH) — 9KB
• ibm-20240617_def.xml (EX-101.DEF) — 29KB
• ibm-20240617_lab.xml (EX-101.LAB) — 46KB
• ibm-20240617_pre.xml (EX-101.PRE) — 33KB
• form8-k_htm.xml (XML) — 40KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On June 17, 2024, International Business Machines Corporation ("IBM") (i) extended the maturity of the existing $2.5 billion Three-Year Credit Agreement dated as of June 22, 2021 (as amended by Amendment No. 1 to Three-Year Credit Agreement, dated as of June 30, 2022, the "Existing Three-Year Credit Agreement"), among IBM, the several banks and other financial institutions from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, BNP Paribas, Citibank N.A. and Royal Bank of Canada, as Syndication Agents, and the Documentation Agents named therein pursuant to an extension request as contemplated by the Existing Three-Year Credit Agreement and (ii) extended the maturity of the existing $7.5 billion Five-Year Credit Agreement dated as of June 22, 2021 (as amended by Amendment No. 1 to Five-Year Credit Agreement, dated as of June 30, 2022, the "Existing Five-Year Credit Agreement"), among IBM, the several banks and other financial institutions from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, BNP Paribas, Citibank N.A. and Royal Bank of Canada, as Syndication Agents, and the Documentation Agents named therein pursuant to an extension request as contemplated by the Existing Five-Year Credit Agreement. The maturity of each of the Existing Three-Year Credit Agreement and the Existing Five-Year Credit Agreement was extended by a period of one year to June 20, 2027 and June 22, 2029, respectively, confirmations of which are filed as Exhibits 10.1 and 10.2 to this report, and are incorporated by reference herein. The terms of the Existing Three-Year Credit Agreement and the Existing Five-Year Credit Agreement otherwise remain unchanged. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 Confirmation of Termination Date Extension dated June 17, 2024 to $2,500,000,000 Three-Year Credit Agreement dated as of June 22, 2021 (as amended by Amendment No. 1 to Three-Year Credit Agreement, dated as of June 30, 2022), among IBM, the several banks and other financial institutions from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, BNP Paribas, Citibank N.A. and Royal Bank of Canada, as Syndication Agents, and the Documentation Agents named therein 10.2 Confirmation of Termination Date Extension dated June 17, 2024 to $7,500,000,000 Five-Year Credit Agreement dated as of June 22, 2021 (as amended by Amendment No. 1 to Five-Year Credit Agreement, dated as of June 30, 2022), among IBM, the several banks and other financial institutions from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, BNP Paribas, Citibank N.A. and Royal Bank of Canada, as Syndication Agents, and the Documentation Agents named therein 104 Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. Date: June 21, 2024 By: /s/ Brien Wierzchowski Name: Brien Wierzchowski Title: Vice President and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR