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RULE 424(b)(3)
REGISTRATION NO. 333-21073
PRICING SUPPLEMENT NO. 3
TO PROSPECTUS DATED MARCH 6, 1997
(As supplemented April 2, 1997)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Floating Rate Note)
(Due One Year or More from date of issue)
Designation: Floating Rate Original Issue Date:
Medium-Term Notes Due: July 25, 1997
August 28, 1998
Principal Amount: $100,000,000 Maturity Date:
August 28, 1998
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day
whether or not a
Interest Rate Base: LIBOR Business Day prior to
the corresponding
Spread: Minus 0.13% Interest Payment Date
Initial Interest Rate: 5.588% Interest Payment Dates:
August 28, 1997,
Redemption Provisions: None November 28, 1997,
February 28, 1998,
Commission or Discount (as May 28, 1998 and Maturity
a percentage of Principal Date
Amount): 0.00%
Interest Reset Dates:
CUSIP: 459 20Q AL8 August 28, 1997,
November 28, 1997,
Index Maturity: 3 months February 28, 1998 and
May 28, 1998
Interest Reset Period:
Quarterly
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 LIBOR minus a spread of 0.13%.
Interest on the Notes will be calculated based on the actual number of
days elapsed over a year of 360 days. The initial Calculation Agent with
respect to the Notes will be The Chase Manhattan Bank.
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. For purposes of the offering made hereby, "Business Day" as
used herein and in the accompanying Prospectus Supplement means any day on
which commercial banks and foreign exchange markets settle payments in The
City of New York. Capitalized terms used but not defined herein have the
meanings assigned in the accompanying Prospectus Supplement and Prospectus.
PLAN OF DISTRIBUTION
The Notes will be sold to Smith Barney Inc. for resale to one or more
investors at a fixed public offering price. After the initial public offering
of the Notes, the public offering price and any concession or discount may be
changed.
Dated: July 25, 1997
