Friday, May 10, 2019

IBM's Bond Offering

IBM recently issued $20 billion in bonds, the seventh largest bond offering in history. The bonds were issued at 1.45 percent above Treasuries. Offers for the bonds totaled $40 billion. The funds from the bond issue are to be used for the acquisition of Red Hat, which recently received regulatory approval. T-Mobile USA and Fidelity National are expected to announce large bond offerings soon to fund acquisitions as well.