8-KOther EventsExhibits & Filings

STARBUCKS CORP 8-K Report, Corporate Update (May 8, 2025)

Filed May 8, 2025For Securities:SBUX

Summary

Starbucks Corporation (SBUX) has announced the completion of a public offering, raising a total of $1.75 billion through the issuance of senior unsecured notes. This offering consists of three tranches: $750 million in 4.500% Senior Notes due 2028, $500 million in 4.800% Senior Notes due 2030, and $500 million in 5.400% Senior Notes due 2035. The funds raised will bolster the company's financial flexibility and are likely intended for general corporate purposes, including potential debt refinancing or strategic investments. These notes are senior unsecured obligations of Starbucks and rank equally with other existing senior unsecured indebtedness. Investors should note that the notes are effectively subordinated to any liabilities of Starbucks' subsidiaries. The company has outlined terms for redemption of these notes, including make-whole provisions and redemption at par under certain conditions, as well as a repurchase obligation in the event of a change of control combined with a credit rating downgrade. This issuance reflects Starbucks' ongoing capital management strategy and its ability to access public debt markets.

Key Highlights

  • 1Starbucks completed a public offering of $1.75 billion in senior unsecured notes.
  • 2The offering includes $750 million of 4.500% Senior Notes due 2028.
  • 3The offering includes $500 million of 4.800% Senior Notes due 2030.
  • 4The offering includes $500 million of 5.400% Senior Notes due 2035.
  • 5The notes are senior unsecured obligations, ranking equally with other senior unsecured debt.
  • 6The notes are effectively subordinated to liabilities of Starbucks' subsidiaries.
  • 7The company has outlined specific redemption terms and a change of control repurchase provision.

Frequently Asked Questions

Starbucks has issued a total of $1.75 billion in senior unsecured notes across three different maturities.

The new notes carry the following terms: $750 million at 4.500% due May 15, 2028; $500 million at 4.800% due May 15, 2030; and $500 million at 5.400% due May 15, 2035.

These notes are Starbucks' senior unsecured obligations and will rank equally with its other senior unsecured indebtedness. However, they are effectively subordinated to any existing or future indebtedness or liabilities of the company's subsidiaries.

Starbucks will be required to offer to repurchase the notes at 101% of their principal amount (plus accrued interest) if a change of control triggering event occurs, which involves both a change of control and a below investment grade rating of the applicable note series by Moody's and S&P.