<PAGE>
RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 2
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: April 1, 1998
April 1, 1999
Principal Amount: $100,000,000 Maturity Date:
April 1, 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 0.17% Interest Payment Date
Initial Interest Rate: 5.52141% Interest Payment Dates:
July 1, 1998,
Redemption Provisions: None October 1, 1998,
January 1, 1999,
Commission or Discount (as and the
a percentage of Principal Maturity Date
Amount): 0.00%
Interest Reset Dates:
CUSIP: 459 20Q AT1
July 1, 1998,
Index Maturity: 3 months October 1, 1998, and
January 1, 1999
Interest Reset Period:
Quarterly
Interest Determination
Dates:
Second London Banking Day
preceding each Interest
Reset Date
Form:/X/ Book-Entry
/ / Certificated
<PAGE>
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 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 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
spread of 0.17%.
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, 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 this offering, "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, and is a day
on which dealings in deposits in U.S. Dollars are transacted in the London
interbank market (a `London Banking Day').
Capitalized terms used but not defined in this document have the
meanings assigned to them in the accompanying Prospectus Supplement and
Prospectus.
PLAN OF DISTRIBUTION
The Notes will be sold to Morgan Stanley & Co. Incorporated 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: March 27, 1998
