The Adobe Flash Player is required to view this multimedia interactive. Get it here.

IBM offers to swap higher-interest debt

Prepare a Black Friday game plan
11/22/09
AK Steel to raise prices for carbon steel
11/20/09
State jobless rate jumps to 10.5 percent
11/20/09
Waste gas could power Middletown Works
11/20/09
Tedia Company needs your help
11/19/09
> More headlines

The Associated Press 5:36 PM Friday, November 6, 2009

ARMONK, N.Y. — IBM Corp. on Friday made an offer to certain debt holders to swap their long-term debt with bonds carrying a lower interest rate plus cash in a move to save money and bolster its balance sheet.

The computer maker said it started a tender offer to exchange its 7.125 percent debentures due 2096, 7 percent debentures due 2045 and 8 percent notes due 2038 for senior notes due in 2039 that carry a lower interest rate of 5.6 percent.

To entice investors to exchange higher-interest debt for new notes that pay a lower rate, IBM will give them cash as well. In addition, holders of the 2038 notes who exchange their debt will get 10 percent more worth of new notes.

The new debt will be unsecured senior notes.

Investors who swap their debt early will get the full face value of the security. The deadline for the tender offer is 5 pm. EST on Nov. 20.

Shares of IBM, based in Armonk, N.Y., rose 94 cents to close at $123.49 on Friday.

___

November 06, 2009 10:34 PM EST

Share this article