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IBM launches $20B debt providing

IBM (IBM +0.6%) launches a $20B bond sale to help with its red Hat (NYSE:RHT) acquisition, which is valued at roughly $33B and is expected to shut in H2.

The debt offering is in eight materials ranging from $1.5B two-yr fixed at +50 to $3B 30-year fixed at +a hundred forty five. (Bloomberg information)

IBM has a pre-acquisition debt load of about $50B however still has excessive credit ratings. The enterprise plans to suspend buybacks in 2020 and 2021 to funnel most of the FCF in opposition t paying down the debt.

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