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IBM (IBM +0.6%) launches a $20B bond sale to support with its crimson Hat (NYSE:RHT) acquisition, which is valued at roughly $33B and is expected to close in H2.
The debt providing is in eight elements starting from $1.5B two-year fastened at +50 to $3B 30-yr fixed at +one hundred forty five. (Bloomberg records)
IBM has a pre-acquisition debt load of about $50B but still has excessive credit rankings. The company plans to suspend buybacks in 2020 and 2021 to funnel many of the FCF against paying down the debt.
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