Summary
IBM announced on February 3, 2020, its intention to redeem a significant portion of its outstanding notes. Specifically, the company will redeem in full its 2.900% Notes due 2021, 2.800% Notes due 2021, and 2.250% Notes due 2021. The total aggregate principal amount being redeemed is $2.9 billion ($500 million + $1,500 million + $900 million). This redemption, scheduled for March 6, 2020, indicates a proactive capital management strategy by IBM. Investors should note that while the company has provided notice to the trustee, this filing itself is not the formal notice of redemption to noteholders. The redemption will occur at the applicable price specified in the governing indenture, plus any accrued and unpaid interest.
Key Highlights
- 1IBM to redeem $2.9 billion in aggregate principal amount of notes due 2021.
- 2Three series of notes are being redeemed: 2.900% Notes, 2.800% Notes, and 2.250% Notes.
- 3The redemption date is set for March 6, 2020.
- 4Redemption will be at the applicable price according to the indenture plus accrued interest.
- 5The company has notified The Bank of New York Mellon, as trustee.
- 6This 8-K filing is not the official notice of redemption to noteholders.
Frequently Asked Questions
IBM is redeeming a total aggregate principal amount of $2.9 billion across three series of notes due in 2021.
The redemption is scheduled to occur on March 6, 2020.
IBM is redeeming its 2.900% Notes due 2021 ($500 million), 2.800% Notes due 2021 ($1,500 million), and 2.250% Notes due 2021 ($900 million).
The notes will be redeemed at the applicable redemption price as calculated in accordance with the indenture governing each series of notes, in addition to any accrued and unpaid interest.