RULE 424(b)(2)
REGISTRATION NO. 33-49411
PRICING SUPPLEMENT NO. 146 PROSPECTUS DATED APRIL 16, 1993
(As supplemented August 17, 1993)
IBM CREDIT CORPORATION
MEDIUM-TERM NOTES
(Floating Rate Note)
(Due from 9 months to 30 years from date of issue)
Designation: Floating Rate Original Issue Date:
Medium-Term Notes Due January 13, 1994
January 13, 1995
Principal Amount: $50,000,000 Maturity Date:
January 13, 1995
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day
(whether or not a
Interest Rate Base: Treasury Rate Business Day) prior to
the corresponding
Spread: Plus 25 basis points Interest Payment Date
Initial Interest Rate: Interest Reset Dates:
Treasury Rate plus 25 basis First day of each corresponding
points, with Treasury Rate Interest Reset Period,
calculated as if the Original commencing April 13, 1994
Issue Date were an Interest
Reset Date
Commission or Discount (as a
percentage of Principal
Amount): 0.50%
Interest Payment Dates: Interest Reset Period:
April 13, 1994, July 13, 1994, Quarterly, commencing with and
October 13, 1994 and January 13, including each Interest Payment
1995 Date, to, but excluding, the
immediately following Interest
Payment Date (or any such
quarterly period after the
Maturity Date)
Redemption Provisions:
None
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Index Maturity: 3 months Form: [X] Book-Entry
[ ] Certificated
This Pricing Supplement supplements and, to the extent
inconsistent therewith, amends the description of the Notes referred to
above in the accompanying Prospectus Supplement and Prospectus.
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INTEREST
The Notes will bear interest at a rate reset on the Interest
Reset Dates specified above. The interest rate in effect from the
Original Issue Date to the first Interest Reset Date with respect to the
Notes will be the Initial Interest Rate. Thereafter, the interest rate
per annum on the Notes for each Interest Reset Period will be determined
as Treasury Rate plus 25 basis points.
Interest on the Notes will be calculated based on the actual
number of days elapsed over a year of 365 days (or, if any portion of
the period for which interest is being calculated falls in a leap year,
the sum of (A) the actual number of days in that portion of such period
falling in a leap year divided by 366 and (B) the actual number of days
in that portion of such period falling in a non-leap year divided by
365). The initial Calculation Agent with respect to the Notes will be
Merrill Lynch, Pierce, Fenner & Smith Incorporated.
If any Interest Payment Date or any Interest Reset Date would
otherwise be a day that is not a Business Day, such date will be
postponed to the next day that is a Business Day. For purposes of the
offering made hereby, "Business Day" as used herein and in the
accompanying Prospectus Supplement means any day that is neither a
Saturday or Sunday nor a day on which commercial banks in The City of
New York are required or authorized to be closed. Capitalized terms
used but not defined herein have the meanings assigned in the
accompanying Prospectus Supplement and Prospectus.
CERTAIN UNITED STATES INCOME TAX CONSEQUENCES
Set forth below is a summary of certain United States Federal
income tax consequences resulting from the ownership of Notes by an
original purchaser generally subject to United States income taxation.
This summary does not discuss tax consequences that might be relevant to
holders in special circumstances or subject to special rules, such as
certain financial institutions, insurance companies, dealers in
securities, nonresident alien individuals, foreign corporations, or
nonresident alien fiduciaries of foreign estates or trusts, and does not
address the taxation of a subsequent purchaser of a Note. Persons
considering the purchase of Notes should consult their own tax advisors
with regard to the application of the United States Federal income tax
laws to their particular situations as well as any tax consequences
arising under the laws of any state, local or foreign taxing
jurisdiction.
Special rules apply to the Notes because their maturity does
not exceed one year from their issue date. It appears that all holders
of Notes using the accrual method of accounting, as well as certain
holders using the cash method of accounting (including banks, securities
dealers and regulated investment companies) will be required to accrue
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interest on the Notes into income as it accrues under the terms of the
Notes. (In that regard, it should be noted that proposed Treasury
Regulations relating to original issue discount ("OID") treat the stated
interest on a Note as OID; such a result should not materially affect
the timing of income accruals on a Note.) Because of the lack of tax
regulations applicable to the Notes, however, other results are
possible.
Other cash method holders of the Notes will generally not be
required, but may elect under Section 1282(b)(2) of the Code, to accrue
stated interest or OID into income on a current basis as described
above. If such a holder does not so elect, such holder will be required
to recognize income when interest payments are received, and such holder
might not be allowed to deduct all the interest paid or accrued on any
indebtedness incurred or maintained to purchase or carry such Note until
the Maturity Date of the Note or its earlier disposition in a taxable
transaction. In addition, such a non-electing cash method holder will
be required to treat any gain realized on a sale, exchange or retirement
of the Note as ordinary income to the extent such gain does not exceed
the accrued but untaxed OID at the time of the disposition.
Upon the sale, exchange or retirement of a Note, a holder will
recognize taxable gain or loss equal to the difference between the
amount realized (not including amounts representing accrued interest not
previously taken into income under the rules described above) on the
sale, exchange or retirement and such holder's adjusted tax basis in the
Note. Except as described above, such gain or loss will be capital gain
or loss, assuming the Note is held as a capital asset. A holder's tax
basis for a Note generally will be the holder's purchase price for the
Note, increased by any stated interest or OID that the holder has
accrued into income currently under the rules described above but not
yet received.
PLAN OF DISTRIBUTION
The Notes will be sold by the Company to Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") at
a discount of 0.50% of the Issue Price set forth above, for resale to
one or more investors at varying prices related to prevailing market
prices at the time of resale, to be determined by Merrill Lynch.
Merrill Lynch has been added as an Agent as of January 6, 1994.
Dated: January 7, 1994.
