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RULE 424(b)(3)
REGISTRATION NO.333-40669
PRICING SUPPLEMENT NO. 13
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:
Medium-Term Notes Due August 20, 1998
August 20, 2013
Principal Amount: $20,000,000 Maturity Date:
August 20, 2013
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 98.25% Fifteenth calendar day,
whether or not a Business
Day, immediately preceding
the corresponding Interest
Payment Date
Interest Rate: 6.40% Interest Payment Dates:
Semiannually, on the
20th day of
February and August,
commencing February 20,
1999
Commission or discount (as CUSIP No: 459 20Q BE3
a percentage of Principal
Amount): 1.75%
Redemption Provisions: See Below
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Form: [X] Book-Entry
[ ] Certificated
This is a Pricing Supplement. It describes the Fixed Rate Notes now 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 by
providing specific information about the Notes issued in this particular
transaction. It also amends the Prospectus Supplement and Prospectus to the
extent that the description of the Notes in this Pricing Supplement is not
consistent with 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 succeeding 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. Capitalized terms used but not defined in this Pricing Supplement have
the meanings which have already been assigned to them in the accompanying
Prospectus Supplement and Prospectus.
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REDEMPTION PROVISIONS:
The Notes are redeemable in whole, but not in part, by the Company on
any Interest Payment Date occurring either on or after August 20, 2001. When
the Company intends to redeem the Notes, it will give at least FIFTEEN (15)
CALENDAR DAYS prior notice of the redemption. The redemption price will be
at "par", in other words, at 100% of the Principal Amount of the Notes.
PLAN OF DISTRIBUTION
The Notes will be sold to PaineWebber Incorporated at the Issue Price set
forth above. PaineWebber, in turn, will resell the Notes to one or more
investors at varying prices related to prevailing market conditions at the time
of resale.
Dated: July 27, 1998
