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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 5
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 Due May 21, 1999 May 21, 1998
Principal Amount: $100,000,000 Maturity Date:
May 21, 1999
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 0.20% Interest Payment Date
Initial Interest Rate: 5.49531% Interest Payment Dates:
August 21, 1998,
Redemption Provisions: None November 21, 1998,
February 21, 1999,
Commission or Discount (as and the
a percentage of Principal Maturity Date
Amount): 0.00%
Interest Reset Dates:
CUSIP: 459 20Q AW4 August 21, 1998
November 21, 1998 and
February 21, 1999
Index Maturity: 3 months
Interest Reset Period:
Quarterly
Interest Determination
Dates: Second London
Banking Day preceding each
Interest Reset Date
Form:/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
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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 minus a
so-called 'spread' of twenty basis points (0.20%).
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
preceding day that is a Business Day.
For purposes of this offering, a "Business Day" as used in this Pricing
Supplement 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, and is a day on which dealings in deposits in U.S. Dollars are transacted
in the London interbank market (a 'London Banking Day').
Other capitalized terms which are used but which are not defined in
this Pricing Supplement have the meanings assigned to them in the accompanying
Prospectus Supplement and Prospectus.
PLAN OF DISTRIBUTION
The Notes will be sold to Credit Suisse First Boston Corporation 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: May 19, 1998
