IBM May Offer 5, 10, 30 Year Bonds at 375-390 Spread

IBM ( IBM ), following a mixed Q3 pre-announcement last night , is today preparing to offer a series of five-, ten-, and 30-year bonds worth a total consideration of $1 billion, The Wall Street Journal reports , citing “two people familiar with the matter.” The sale of the bonds “is expected to occur as soon as possible,” the paper says. (Subscription required to access the full article.) The Journal says the spread is expected to be 390 basis points for the 5- and 30-year bonds, and 375 points for the 10-year bond. The Journal says Barclays Capital, Banc of America Securities, Credit Suisse and Deutsche Bank are the underwriters for the offering. The article further points out that issuance of corporate high-grade bonds is down 82% this month, year-over-year. Fund manager William Larkin of Salem, Massachusetts-based Cabot Money Management is quoted as saying the offer is a sign storm clouds may be clearing. (link)