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IBM (IBM +0.6%) launches a $20B bond sale to aid with its red Hat (NYSE:RHT) acquisition, which is valued at roughly $33B and is expected to close in H2.
The debt offering is in eight constituents ranging from $1.5B two-yr fastened at +50 to $3B 30-year fixed at +145. (Bloomberg records)
IBM has a pre-acquisition debt load of about $50B but nevertheless has excessive credit rankings. The business plans to droop buybacks in 2020 and 2021 to funnel many of the FCF in opposition t paying down the debt.
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