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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 21
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 October 19, 1999 October 19, 1998
Principal Amount: $100,000,000 Maturity Date:
October 19, 1999
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 99.986% Fifteenth calendar day
whether or not a
Interest Rate Base: LIBOR (3 MONTH) Business Day prior to
the corresponding
Spread: MINUS 0.05% Interest Payment Date
Initial Interest Rate: 5.29328% Interest Payment Dates:
January 19, 1999
April 19, 1999
Redemption Provisions: None July 19, 1999 and
the Maturity Date
Commission or Discount (as
a percentage of Principal
Amount): 0.014% Interest Reset Dates:
Each Interest Payment
CUSIP: 459 20Q BN3 Date (other than the
Maturity Date)
Index Maturity: 3 month
Designated LIBOR Page: Interest Reset Period:
Telerate Page 3750 Quarterly
Interest Determination
Dates: Second London
Banking Day preceding
each Interest Reset Date
Form:[X] Book-Entry
[ ] Certificated
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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 pricing information, as well as other
specific information of interest 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 Spread of five basis points (0.05%).
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, that 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.
A "Business Day" as described 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 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: October 13, 1998
