IBM Issues Over $7 Billion in Debt

Ticker: IBM · Form: 8-K · Filed: 2024-06-21T00:00:00.000Z

Sentiment: neutral

Topics: debt-issuance, financing, notes, debentures

Related Tickers: IBM

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

What is the total aggregate principal amount of debt issued by IBM on June 17, 2024?

The total aggregate principal amount of debt issued by IBM on June 17, 2024, is over $7 billion, comprising various series of notes and debentures.

What are the maturity dates for the notes and debentures issued by IBM?

The maturity dates for the notes and debentures issued by IBM range from 2024 to 2096, including 2024, 2025, 2026, 2029, 2034, 2040, and 2096.

What specific types of financial instruments did IBM issue?

IBM issued various series of notes and debentures.

What is the principal amount of the debentures due in 2096?

The principal amount of the debentures due in 2096 is $1.125 billion.

What is the purpose of this debt issuance for IBM?

The filing does not explicitly state the purpose of the debt issuance, but it is filed under 'Entry into a Material Definitive Agreement' and 'Creation of a Direct Financial Obligation'.

From the Filing

0000950157-24-000918.txt : 20240621 0000950157-24-000918.hdr.sgml : 20240621 20240621160256 ACCESSION NUMBER: 0000950157-24-000918 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20240617 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240621 DATE AS OF CHANGE: 20240621 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: 241060099 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 form8-k.htm CURRENT REPORT false 001-02360 0000051143 NY 1 NEW ORCHARD RD NY NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE CHX NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE 0000051143 2024-06-17 2024-06-17 0000051143 ibm:Seven125DebenturesDue2096Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:One125NotesDue2024Member 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Zero875NotesDue2025Member 2024-06-17 2024-06-17 0000051143 ibm:One500NotesDue2029Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:One250NotesDue2034Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:One200NotesDue2040Member 2024-06-17 2024-06-17 0000051143 ibm:Seven00DebenturesDue2025Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Zero300NotesDue2026Member 2024-06-17 2024-06-17 0000051143 ibm:Zero300NotesDue2028Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Two875NotesDue2025Member 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:One750NotesDue2028Member 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember us-gaap:CommonStockMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Five875DebenturesDue2032Member 2024-06-17 2024-06-17 0000051143 ibm:Four875NotesDue2038Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Seven00DebenturesDue2045Member 2024-06-17 2024-06-17 0000051143 ibm:Zero650NotesDue2032Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:Three750NotesDue2035Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:Zero950NotesDue2025Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Three375NotesDue2027Member 2024-06-17 2024-06-17 0000051143 ibm:Three625NotesDue2031Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:One250NotesDue2027Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Six50DebenturesDue2028Member 2024-06-17 2024-06-17 0000051143 ibm:Four000NotesDue2043Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:One750NotesDue2031Member ibm:NYSEMember 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Zero875NotesDue2030Member 2024-06-17 2024-06-17 0000051143 ibm:NYSEMember ibm:Six22DebenturesDue2027Member 2024-06-17 2024-06-17 0000051143 us-gaap:CommonStockMember ibm:CHXMember 2024-06-17 2024-06-17 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:  June 17, 2024 (Date of earliest event reported)   INTERNATIONAL BUSINESS MACHINES CORP ORATION (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 Orchar