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IBM launches $20B debt offering

IBM (IBM +0.6%) launches a $20B bond sale to help with its pink Hat (NYSE:RHT) acquisition, which is valued at roughly $33B and is expected to shut in H2.

The debt providing is in eight components starting from $1.5B two-12 months fixed at +50 to $3B 30-12 months fixed at +145. (Bloomberg statistics)

IBM has a pre-acquisition debt load of about $50B however nonetheless has high credit rankings. The business plans to suspend buybacks in 2020 and 2021 to funnel lots of the FCF towards paying down the debt.

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