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IBM (IBM +0.6%) launches a $20B bond sale to help with its purple Hat (NYSE:RHT) acquisition, which is valued at roughly $33B and is expected to close in H2.
The debt offering is in eight elements ranging from $1.5B two-12 months fastened at +50 to $3B 30-year fastened at +one hundred forty five. (Bloomberg facts)
IBM has a pre-acquisition debt load of about $50B however still has excessive credit scores. The company plans to droop buybacks in 2020 and 2021 to funnel many of the FCF towards paying down the debt.
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