RULE 424(b)(2)
REGISTRATION NO. 33-56207
PRICING SUPPLEMENT NO. 14 TO PROSPECTUS DATED NOVEMBER 3, 1994
(As supplemented November 17, 1994)
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 March 27, 1995
March 27, 1997
Maturity Date:
Principal Amount: $25,000,000 March 27, 1997
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day
(whether or not a Business
Interest Rate Base: LIBOR Day) prior to the corres-
ponding Interest Payment
Spread: Plus 20 basis points Date
Desingated LIBOR Page: Telerate CUSIP: 44922L S56
Page 3750
Interest Reset Dates:
Initial Interest Rate: LIBOR First day of each
plus 20 basis points, Interest Reset
calculated as if the Period, commencing April 27,
Original Issue Date were 1995
an Interest Reset Date
Interest Reset Period:
Commission or Discount (as a Monthly, commencing with and
percentage of Principal including each Interest
Amount): 0.00% Payment Date, to, but
excluding, the immediately
Interest Payment Dates: following Interest Payment
The 27th day of each month Date (or any such monthly
commencing April 27, 1995 and period after the Maturity
ending on the Maturity Date Date)
Index Maturity: 1 month Redemption Provisions: None
Denomination: $25,000,000
Form: [X] Book-Entry
[ ] Certificated
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See "INTEREST", below, for a description of the holder's
obligation to establish a Range Factor for each Interest Reset Period
and the circumstances under which no interest will be payable on
certain Interest Payment Dates.
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.
INTEREST
The Note 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 Note will be the Initial Interest Rate. Thereafter, the interest
rate per annum on the Note for each Interest Reset Period will be
determined as LIBOR (with an Index Maturity of 1 month) plus a Spread
of 20 basis points.
Notwithstanding the foregoing, no interest shall be payable
on any Interest Payment Date if LIBOR, calculated for the Interest
Reset Period commencing on such Interest Payment Date, is less than or
greater than the Range (as defined below) selected for the Interest
Reset Period ending on such Interest Payment Date.
The term "Range" with respect to an Interest Reset Period
means the range of LIBOR that is 85 basis points (0.85%) wide
(including the endpoints) selected by the holder of the Note for such
Interest Reset Period in accordance with the provisions set forth
below.
By not later than 11:00 a.m. (New York City time), two
Business Days (the "Range Selection Date") prior to the first day of
each Interest Reset Period, the holder of the Note shall, upon oral,
which may be telephonic, notice (shortly thereafter confirmed by fax)
(the "Notice of Selection"), to the Calculation Agent at the
Calculation Agent Inquiries (as defined below), select the Range for
such Interest Reset Period. Such Notice of Selection shall be
irrevocable.
In the event that the holder fails to select a Range by
11:00 a.m. (New York City time) on a Range Selection Date, the Range
for the Interest Reset Period commencing on the immediately following
Interest Payment Date will be calculated with reference to LIBOR, as
determined by the Calculation Agent for such Interest Reset Period,
and the Range shall consist of LIBOR minus 42.5 basis points to LIBOR
plus 42.5 basis points.
The term "Calculation Agent Inquiries" shall mean
Banque Paribas Swaps Desk, care of Paribas Corporation, Telephone
No. 212-841-3000, Fax No. 212-841-3555.
Interest on the Note will be calculated based on a year of
360 days and the actual number of days in the period for which interest
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is being calculated. The initial Calculation Agent with respect to the
Note will be Banque Paribas.
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, 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.
Capitalized terms used but not defined herein have the meanings
assigned in the accompanying Prospectus Supplement and Prospectus.
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
This summary supplements, and to the extent inconsistent
therewith replaces, the discussion set forth in the Prospectus
Supplement under the heading "Certain United States Federal Income Tax
Considerations". It addresses only holders to which the Prospectus
Supplement applies, and uses terms as defined therein.
No statutory, judicial or administrative authority directly
addresses the characterization of the Note or instruments similar to
the Note for U.S. Federal income tax purposes, and no ruling is being
requested from the Internal Revenue Service (the "IRS") with respect
to the Note. As a result, the U.S. Federal income tax consequences
are not entirely certain, and no assurance can be given that the IRS
will agree with the conclusions expressed herein. Accordingly, a
prospective investor should consult its tax advisor in determining the
tax consequences of an investment in the Note.
Under the Code and general tax principles, a U.S. Holder
would be required to include interest in income as it is paid or
accrued, in accordance with the U.S. Holder's method of accounting.
Generally, interest would not accrue during a calculation period until
the amount payable for such period becomes fixed, two business days
prior to the first day of the next calculation period.
Under recently proposed Treasury Regulations, a U.S. Holder
would be required to include interest in income as it is accrued,
based on projected payments on the Note, with adjustments when actual
payments differ from projected payments. This approach would require
accrual of interest at some rate throughout the calculation period,
and might result in some timing differences from the approach
described above. However, interest accrued under this approach should
not be significantly different than interest accrued at the stated
rate of interest on the Note. These proposed regulations by their
terms only apply to debt issued at least 60 days after publication of
final regulations, and therefore would not apply to the Note. However, no
assurance can be given that the IRS or the courts would not apply the
principles of the regulations to the Notes.
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PLAN OF DISTRIBUTION
The Note will be sold by the Company to Paribas Corporation
("Paribas") for resale to one investor at the Issue Price set forth
above. After the initial public offering of the Note, the public
offering price and any concession or discount may be changed.
Dated: March 14, 1995.
