Rule 424(b)(3)
Registration No. 333-70521
PRICING SUPPLEMENT NO. 7 (Amended)
TO PROSPECTUS DATED March 9, 1999
(As supplemented March 11, 1999)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Due from one year to 30 years from date of issue )
Designation: Floating Rate Original Issue Date:
Medium-Term Notes Due May 25, 1999
May 25, 2001
Principal Amount: $50,000,000 Maturity Date:
May 25, 2001
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100.00% Fifteenth calendar day, whether
or not a Business Day prior to
the corresponding Interest
Interest Rate Base: Libor (3 month) Payment Date.
Spread: Minus 0.01% Interest Reset Dates:
Each Interest Payment Date
(other than the Maturity Date)
Initial Interest Rate: 5.03875%
(as amended)
Interest Payment Dates:
Quarterly, on the 25th
of February, May, August,
and November, commencing
August 25, 1999.
Commission or Discount (as a
percentage of Principal Amount):0.00%
Index Maturity: 3 months Designated LIBOR Page:
Telerate Page 3750
CUSIP: 459 20Q CL6 Redemption Provisions: None
Form: [X] Book-Entry
[ ] Certificated
INTRODUCTION
This is an Amended Pricing Supplement. It adds to, or 'supplements' the
description of the Notes referred to in the accompanying Prospectus
Supplement and Prospectus. It provides specific pricing and other
information prudent investors want to know about the Notes. The Pricing
Supplement also amends the Prospectus Supplement and Prospectus to the
extent its terms differ from those already described in the Prospectus
Supplement and Prospectus.
INTEREST
The Notes will bear interest at a rate which is reset which is reset on the
Interest Reset Dates which have been listed 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 one basis point
(0.01%).
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 a date will be postponed to the
next day that is a Business Day.
A "Business Day" means any day on which commercial banks and foreign banks
exchange markets settle payments in the City of New York.
We have a capitalized other terms in this document. If they were not
defined specifically here, those terms have the same meaning we have
already given to them in the Prospectus Supplement and Prospectus.
PLAN OF DISTRIBUTION
We are selling the Notes to Lehman Brothers. In turn, they
will be reselling the Notes to one or more investors at varying prices, which
prices may be dependent on market conditions.
Dated: May 20, 1999
