RULE 424(b)(2)
REGISTRATION NO. 33-49411
PRICING SUPPLEMENT NO. 7 TO PROSPECTUS DATED APRIL 16, 1993
(As supplemented August 17, 1993)
IBM CREDIT CORPORATION
MEDIUM-TERM NOTES
(Due from 9 months to 30 years from date of issue)
Designation: Medium-Term Original Issue Date:
Notes Due February 21, 1995 January 21, 1994
Principal Amount: $28,000,000 Maturity Date:
February 21, 1995
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Inapplicable
Interest Rate Base: The Notes will
not bear interest but will be Interest Reset Dates:
treated as LIBOR Notes for Inapplicable
purposes of calculating LIBOR
and the Repayment Amount
Interest Rate: 0%
Interest Reset Period:
Designated LIBOR Page: Telerate Inapplicable
Screen Page 3750
Interest Payment Dates: None
Redemption Provisions:
None
Commission or Discount (as a
percentage of Principal
Amount): 0.15%
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 not bear interest.
PAYMENT AT MATURITY
The Amount of principal to be paid at maturity (the "Repayment
Amount") shall be determined in accordance with the following equation:
Repayment Amount=Principal Amount+(Principal Amount x 7.40% x Spread Days)
5
"Spread Days" shall mean the number of the Determination Dates
on which the LIBOR Spread exceeds 0.10%. The LIBOR Spread shall be
calculated as the difference obtained by subtracting LIBOR from DM-
LIBOR. "Determination Date" shall mean each of the five days
immediately preceding the Maturity Date on which commercial banks are
open for business (including dealings in foreign exchange and foreign
currency deposits) in New York, London and Frankfurt. LIBOR will be
determined for each Determination Date as if such Determination Date
were an Interest Determination Date.
"DM-LIBOR" for the Notes will be determined by the Calculation
Agent in accordance with the following provisions:
(i) With respect to a Determination Date, DM-LIBOR will be the
rate for deposits in Deutsche Marks having the Index Maturity commencing
on the second London Business Day immediately following that
Determination Date, which appears on the Telerate Page 3750 as of 11:00
a.m. London time, on that Determination Date. If such rate does not
appear on the Telerate Page 3750, DM-LIBOR in respect of that
Determination Date will be determined as if the parties had specified
the rate described in (ii) below.
(ii) With respect to a Determination Date on which such rate
does not appear on the Telerate Page 3750 as specified in (i) above, DM-
LIBOR will be determined on the basis of the rates at which deposits in
Deutsche Marks are offered by four major banks in the London interbank
market selected by the Calculation Agent at approximately 11:00 a.m.,
London time, on that Determination Date to prime banks in the London
interbank market having the Index Maturity commencing on the second
London Business Day immediately following that Determination Date and in
a principal amount equal to an amount of not less than U.S. $1 million
that is representative for a single transaction in such market at such
time. The Calculation Agent will request the principal London office of
each of such banks to provide a quotation of its rate. If at least two
such quotations are provided, DM-LIBOR in respect of that Determination
Date will be the arithmetic mean (rounded to the nearest one-hundred
thousandth of a percent) of such quotations. If fewer than two
quotations are provided, DM-LIBOR in respect of that Determination Date
will be the arithmetic mean (rounded to the nearest one-hundred
thousandth of a percent) of the rates quoted by three major banks in
Frankfurt selected by the Calculation Agent at approximately 11:00 a.m.,
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Frankfurt time, on that Determination Date for loans in Deutsche Marks
to leading European banks, having the Index Maturity commencing on the
second London Business Day immediately following that Determination Date
and in a principal amount equal to an amount of not less than U.S. $1
million that is representative for a single transaction in such market
at such time; provided, however, that if the three banks selected as
aforesaid by the Calculation Agent are not quoting as mentioned in this
sentence, DM-LIBOR will be DM-LIBOR in effect on the preceding Business
Day.
The initial Calculation Agent with respect to the Notes will
be Goldman, Sachs & Co. If the Maturity 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, unless that day falls in the next calendar
month, in which case such date will be advanced to the first preceding
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.
PLAN OF DISTRIBUTION
For purposes of this transaction, Goldman, Sachs & Co.
("Goldman") has acted as Agent for the Company. The Notes will be sold
through Goldman to one or more investors at the Issue Price set forth
above. The Company will pay Goldman a commission of 0.15% of the Issue
Price.
Dated: January 14, 1994
