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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 27
TO PROSPECTUS DATED December 10, 1997
(As supplemented December 12, 1997)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Fixed Rate Note)
(Due One Year or More from Date of Issue)
Designation: Fixed Rate Original Issue Date: December 18, 1998
Medium-Term Notes Due
December 18, 2013
Principal Amount: $25,000,000 Maturity Date: December 18, 2013
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day,
whether or not a Business
Day, immediately preceding
the corresponding Interest
Payment Date
Interest Rate: 6.00% Interest Payment Dates:
Semiannually, on the eighteenth
(18th) day of June and December
commencing June 18, 1999
Commission or discount (as CUSIP No: 459 20Q BU7
a percentage of Principal
Amount): 0.00%
Form: [X] Book-Entry
[ ] Certificated
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INTRODUCTION
This is a Pricing Supplement. It describes the Fixed Rate Notes being
issued under the Medium Note Program of International Business Machines
Corporation. This document adds to, or 'supplements' the description of the
Notes referred to in the accompanying Prospectus Supplement and Prospectus. It
does so by providing specific information about the Notes issued in this
particular transaction. This Pricing Supplement also amends the Prospectus
Supplement and Prospectus to the extent that the description of the Notes in
this Pricing Supplement is different from the terms which are set forth in the
Prospectus Supplement and Prospectus.
INTEREST
Interest on the Notes will be calculated based on a year of 360 days
consisting of 12 months of 30 days each.
If any payment of principal or interest is due on a day that is not a
Business Day, that payment may be made on the next day which is a Business Day.
No additional interest will accrue as a result of the delay in payment. For
purposes of this offering, the term "Business Day" means each day on which
commercial banks and foreign exchange markets settle payments in The City of New
York. We have capitalized a number of terms in this document. If you do not
see a definition for those terms in this document, those terms will have the
meanings which we have already given to them in the Prospectus Supplement and
the Prospectus.
REDEMPTION PROVISIONS
- These notes are redeemable, at the sole discretion of the Company.
- If we decide to redeem the Notes, we must redeem ALL of the Notes, not just
part of the Notes.
- We can redeem the Notes any Interest Payment Date occurring on or after
December 18, 2000.
- We must provide at least 30 CALENDAR days' prior notice of a redemption.
- If we redeem the Notes, we will pay "par" for them. Par means 100% of the
Principal Amount of the Notes.
- If we redeem the Notes, we won't pay any interest for any period after the
redemption.
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PLAN OF DISTRIBUTION
We are selling Notes in the total Principal Amount of $25,000,000 to
Salomon Brothers Inc at the Issue Price set forth at the top of this Pricing
Supplement. Salomon Brothers Inc, in turn, is reselling the Notes to investors
at varying prices, which prices are subject to prevailing market conditions at
the time of resale.
Dated: December 4, 1998
