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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 17
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)
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Designation: Floating Rate Original Issue Date:
Medium-Term Notes September 18, 1998
due September 18, 2000
Principal Amount: $50,000,000 Maturity Date:
September 18, 2000
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day
whether or not a
Interest Base Rate: Federal Funds Rate Business Day prior to
the corresponding
Spread: 0.20% Interest Payment Date
Initial Interest Rate: 5.69% Interest Payment Dates:
18th day of March, June
September and December,
beginning on December
18, 1998 and ending on
the Maturity Date
Redemption Provisions: None
Commission or Discount (as
a percentage of Principal
Amount): 0.00% Interest Payment Period
Quarterly
CUSIP: 459 20Q BJ2
Interest Reset Dates:
Daily
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Interest Determination
Dates: Second Business
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 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 each of 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 Federal Funds Rate on each
Interest Determination Date plus a Spread of 20 basis points.
Federal Funds Rate means, with respect to any Interest Determination Date, the
rate on such date for federal funds as published in H.15(519) under the heading
"Federal Funds (Effective)" or if not published by 3:00 p.m., New York City
time, on the related Calculation Date, the rate on such Interest Determination
Date as published in Composite Quotations under the heading "Federal
Funds/Effective Rate." If by 3:00 p.m., New York City time, on the related
Calculation Date such rate is not published in either H.15(519) or Composite
Quotations, then the Federal Funds Rate on such Interest Determination Date will
be calculated by the Calculation Agent and will be the arithmetic mean of the
rates for the last transaction in overnight United States dollar federal funds
arranged by three leading brokers of federal funds transactions in overnight
transactions in The City of New York (which may include the Agents or their
affiliates) selected by the Calculation Agent (after consultation with the
Company) prior to 9:00 a.m., New York City time, on such Interest
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Determination Date; provided, however, that if the brokers so selected by the
Calculation Agent are not quoting as mentioned in this sentence, the Federal
Funds Rate determined as of such Interest Determination Date will be the Federal
Funds Rate then in effect on such Interest Determination Date.
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. 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.
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 Salomon Brothers Inc 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: September 15, 1998
