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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 19
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: September 22, 1998
Medium-Term Notes Due
September 22, 2003
Principal Amount: $185,000,000 Maturity Date: September 22, 2003
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 99.801% Fifteenth calendar day,
whether or not a Business
Day, immediately preceding
the corresponding Interest
Payment Date
Interest Rate: 5.37% Interest Payment Dates:
Semiannually, on the twenty second
(22nd) day of March and September
commencing March 22, 1998
Commission or discount (as CUSIP No: 459 20Q BL7
a percentage of Principal
Amount): 0.199%
Redemption Provisions: NONE
Form: [X] Book-Entry
[ ] Certificated
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INTRODUCTION
This is 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
The Notes are not redeemable by the Company.
PLAN OF DISTRIBUTION
Notes in the total Principal Amount of $185,000,000 will be sold to the
following Agents:
AGENT PRINCIPAL AMOUNT TO BE PURCHASED
Bear Stearns & Co. Inc. $110,000,000
Prudential Securities Inc. 50,000,000
Deutsche Morgan Grenfell Inc. 25,000,000
The Company will sell the Notes to the listed Agents at the Issue Price set
forth at the top of this Pricing Supplement. These Agents, in turn, will resell
the Notes to investors at varying prices, which prices may be subject to
prevailing market conditions at the time of resale.
Dated: September 17, 1998
