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IBM (IBM +0.6%) launches a $20B bond sale to aid with its purple Hat (NYSE:RHT) acquisition, which is valued at roughly $33B and is anticipated to close in H2.
The debt providing is in eight parts starting from $1.5B two-12 months fastened at +50 to $3B 30-yr fixed at +one hundred forty five. (Bloomberg data)
IBM has a pre-acquisition debt load of about $50B however still has excessive credit score ratings. The enterprise plans to droop buybacks in 2020 and 2021 to funnel most of the FCF in opposition t paying down the debt.
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