Starbucks Prices $850 Million of Senior Notes
The international coffee chain announced that it has priced an underwritten public offering of senior notes.
The company plans to use the net proceeds from the offering of $500 million of 2.700% Senior Notes due 2022 and $350 million of 4.300% Senior Notes due 2045 for general corporate purposes, which are expected primarily to include the redemption of the company’s outstanding 6.250% Senior Notes due 2017.
The net proceeds may also be used for repurchases of Starbucks common stock under the company’s ongoing share repurchase program, business expansion, payment of cash dividends on Starbucks common stock, or the financing of possible acquisitions. The offering of the senior notes is expected to close on June 10, 2015, subject to customary closing conditions.
BofA Merrill Lynch, Citigroup and Morgan Stanley are serving as the joint book-running managers of the offering.
