8-KMaterial AgreementsExhibits & Filings

STARBUCKS CORP 8-K Report, Material Agreement (Sep 24, 2020)

Filed September 24, 2020For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced on September 23, 2020, that it has amended and restated its $1.0 billion 364-Day Credit Agreement, originally dated October 24, 2018. This amendment extends the term of this specific credit facility for an additional 364-day period. This action demonstrates proactive liquidity management by the company, ensuring continued access to funding in the short term. Importantly, Starbucks' existing $2.0 billion unsecured, revolving credit facility remains unaffected by this amendment, with its scheduled maturity date of October 25, 2022. This filing indicates that Starbucks is taking steps to manage its debt obligations and maintain financial flexibility, which is a key consideration for investors, especially given the prevailing economic environment in late 2020.

Key Highlights

  • 1Starbucks amended and restated its $1.0 billion 364-Day Credit Agreement.
  • 2The amendment extends the term of the 364-day credit facility by an additional 364 days.
  • 3The existing $2.0 billion unsecured, revolving credit facility remains unchanged.
  • 4The revolving credit facility has a maturity date of October 25, 2022.
  • 5This action is related to the company's ongoing liquidity and debt management strategy.
  • 6The filing was made on September 23, 2020, with an event date of September 22, 2020.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose Starbucks Corporation's amendment and restatement of its $1.0 billion 364-Day Credit Agreement, which extends the term of this facility.

No, the filing explicitly states that the company's existing $2.0 billion unsecured, revolving credit facility remains unchanged and continues to have a maturity date of October 25, 2022.

Extending the 364-day credit agreement signifies Starbucks' proactive approach to managing its short-term liquidity and financial flexibility. It ensures continued access to a committed line of credit, which can be important for operational needs and unforeseen circumstances.

The key parties involved include Starbucks Corporation as the borrower, Bank of America, N.A. as the Administrative Agent and Swing Line Lender, and other Lenders who are party to the agreement.