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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 18
TO PROSPECTUS DATED December 10, 1997
(As supplemented December 12, 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 September 18, 1998
due September 18, 2000
Principal Amount: $25,000,000 Maturity Date:
September 18, 2000
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day
whether or not a
Interest Rate Base: LIBOR (3 MONTH) Business Day prior to
the corresponding
Spread: .025% Interest Payment Date
Initial Interest Rate: 5.525%
Interest Payment Dates: Quarterly, on the 18th of each December, March, June and
September, beginning on December 18, 1998 and ending on the Maturity Date.
Commission or Discount (as a percentage of Principal
Amount): 0.00%
Interest Reset Dates:
Each Interest Payment
CUSIP: 459 20Q BK9 Date (other than the
Maturity Date)
Index Maturity: 3 month
Designated LIBOR Page: Interest Reset Period:
Telerate Page 3750 Quarterly
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Interest Determination Dates: Second London Banking Day preceding each Interest
Reset Date
Form of Note:/X/ Book-Entry
/ / Certificated
This is a Pricing Supplement. It adds to, or 'supplements' the description
of the Notes referred to in the accompanying Prospectus Supplement and
Prospectus. It provides specific information about the Notes. The Pricing
Supplement also amends the Prospectus Supplement and Prospectus to the extent it
is not consistent with the terms contained in the Prospectus Supplement and
Prospectus.
INTEREST
The Notes will bear interest at a rate reset on the Interest Reset Dates
which are specified above. The interest rate in effect from the Original Issue
Date to the first Interest Reset Date for 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 at the rate for Three (3) month LIBOR plus a
Spread of two and one-half basis points (0.025 %).
Interest on the Notes will be calculated based on the actual number of days
elapsed over a year of 360 days. The Calculation Agent for 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. However, if that day falls in the next calendar month,
the Interest Payment Date or Interest Reset Date will be advanced to the first
day before that date which is a Business Day.
A Business Day" means any day on which commercial banks and foreign
exchange markets settle payments in The City of New York, and is a day on which
dealings in deposits in U.S. Dollars are transacted in the London interbank
market (a 'London Banking Day').
We have capitalized other terms in this document. If they are not defined
specifically here, they have have the same
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meanings already given to them in the Prospectus Supplement and Prospectus.
PLAN OF DISTRIBUTION
We are selling the Notes to Chase Securities Inc. They, in turn, are
reselling the Notes to one or more investors at a fixed public offering price.
Thereafter, their price and any related concession or discount may be changed.
Dated: September 15, 1998
