IBM Details Existing Debt Structure in 8-K Filing

Ticker: IBM · Form: 8-K · Filed: 2024-02-02T00:00:00.000Z

Sentiment: neutral

Topics: debt, corporate-finance, 8-K, fixed-income

TL;DR

**IBM just updated its debt profile, showing a mix of notes and debentures due through 2043.**

AI Summary

International Business Machines Corp (IBM) filed an 8-K on February 2, 2024, reporting an "Entry into a Material Definitive Agreement" and "Other Events" as of January 29, 2024. The filing specifically details various notes and debentures with interest rates ranging from 0.300% to 7.00% and maturity dates spanning from 2024 to 2043. This matters to investors because it provides transparency on IBM's existing debt structure, which impacts its financial health and future interest expenses, potentially affecting profitability and dividend sustainability.

Why It Matters

Understanding IBM's debt obligations is crucial for assessing its financial stability and ability to manage future cash flows, directly influencing its valuation and investment appeal.

Risk Assessment

Risk Level: low — This filing is informational, detailing existing debt, and does not indicate new, immediate risks but rather provides transparency on current financial obligations.

Analyst Insight

Investors should review IBM's full financial statements to understand the total principal amounts associated with these debt instruments and assess the company's overall debt burden and liquidity position.

Key Numbers

0.20 — par value per share (par value of IBM's capital stock)
0.300% — lowest interest rate (interest rate on Notes Due 2026 and 2028)
7.00% — highest interest rate (interest rate on Debentures Due 2025)
2024 — earliest maturity year (maturity year for 1.125% Notes)
2043 — latest maturity year (maturity year for 4.000% Notes)

Key Players & Entities

INTERNATIONAL BUSINESS MACHINES CORP (company) — the filer of the 8-K
$0.20 (dollar_amount) — par value per share of capital stock
January 29, 2024 (date) — the conformed period of report
February 2, 2024 (date) — the filing date of the 8-K

Forward-Looking Statements

IBM will continue to manage its debt obligations effectively, given the staggered maturity dates. (IBM) — high confidence, target: 2025

FAQ

What is the par value of International Business Machines Corp's capital stock as stated in the filing?

The filing states that the capital stock has a par value of $.20 per share.

What is the earliest maturity date for any of the notes or debentures listed in this 8-K filing?

The earliest maturity date mentioned is for the 1.125% Notes, which are due in 2024.

What is the highest interest rate among the debentures listed in the filing, and when is it due?

The highest interest rate among the debentures is 7.00% for the Debentures Due 2025.

Which notes have the lowest interest rate, and what are their maturity years?

The 0.300% Notes have the lowest interest rate, with maturity years in 2026 and 2028.

What is the latest maturity year for any of the debt instruments detailed in this 8-K filing?

The latest maturity year for any of the debt instruments is 2043, for the 4.000% Notes.

From the Filing

0001104659-24-010040.txt : 20240202 0001104659-24-010040.hdr.sgml : 20240202 20240202161538 ACCESSION NUMBER: 0001104659-24-010040 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 31 CONFORMED PERIOD OF REPORT: 20240129 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240202 DATE AS OF CHANGE: 20240202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL BUSINESS MACHINES CORP CENTRAL INDEX KEY: 0000051143 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER & OFFICE EQUIPMENT [3570] ORGANIZATION NAME: 06 Technology IRS NUMBER: 130871985 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02360 FILM NUMBER: 24591610 BUSINESS ADDRESS: STREET 1: 1 NEW ORCHARD ROAD CITY: ARMONK STATE: NY ZIP: 10504 BUSINESS PHONE: 9144991900 MAIL ADDRESS: STREET 1: 1 NEW ORCHARD RD CITY: ARMONK STATE: NY ZIP: 10504 8-K 1 tm243984d7_8k.htm FORM 8-K false 0000051143 Capital stock, par value $.20 per share IBM CHX 0000051143 2024-01-29 2024-01-29 0000051143 us-gaap:CommonStockMember exch:XCHI 2024-01-29 2024-01-29 0000051143 us-gaap:CommonStockMember exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes1.125PercentDue2024Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes2.875PercentDue2025Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes0.950PercentDue2025Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes0.875PercentDue2025Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes0.300PercentDue2026Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes1.250PercentDue2027Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes3.375PercentDue2027Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes0.300PercentDue2028Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes1.750PercentDue2028Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes1.500PercentDue2029Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes0.875PercentDue2030Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes1.750PercentDue2031Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes3.625PercentDue2031Member exch:XNYS 2024-01-29 2024-01-29 0000051143 exch:XNYS ibm:Notes0.650PercentDue2032Member 2024-01-29 2024-01-29 0000051143 exch:XNYS ibm:Notes1.250PercentDue2034Member 2024-01-29 2024-01-29 0000051143 ibm:Notes3.750PercentDue2035Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Notes4.875PercentDue2038Member exch:XNYS 2024-01-29 2024-01-29 0000051143 exch:XNYS ibm:Notes1.200PercentDie2040Member 2024-01-29 2024-01-29 0000051143 ibm:Notes4.000PercentDue2043Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Debentures7.00PercentDue2025Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Debentures6.22PercentDue2027Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Debentures6.50PercentDue2028Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Debentures5.875PercentDue2032Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Debentures7.00PercentDue2045Member exch:XNYS 2024-01-29 2024-01-29 0000051143 ibm:Debentures7.125PercentDue2096Member exch:XNYS 2024-01-29 2024-01-29 iso4217:USD xbrli:shares iso4217:USD xbrli:shares   Title of each class Capital stock, par value $.20 per share Trading symbol IBM Common Stock     UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549        FORM 8-K       CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934    Date of Report: January 29, 2024 (Date of earliest event reported)       INTERNATIONAL BUSINESS MACHINES CORPORATION (Exact name of registrant as specified in its charter)       New York   1-2360   13-0871985 (State of Incorporation)   (Commission File Number)   (IRS employer Identification No.)   One New Orcha