New Issue: Starbucks prices $3 billion of senior notes due 2022, 2030, 2050

By Marisa Wong

Los Angeles, May 5 – Starbucks Corp. priced $3 billion of senior notes (Baa1/BBB+/BBB) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

Starbucks priced $500 million of 1.3% notes due May 2022 at 99.933 to yield 1.334%. The notes were sold with a spread of 115 basis points over Treasuries.

The company priced $1.25 billion of 2.55% notes due Nov. 15, 2030 at 99.725 to yield 2.58%. The notes were sold with a spread of 195 bps over Treasuries.

The company also priced $1.25 billion of 3.5% notes due Nov. 15, 2050 at 99.33 to yield 3.536%, or a spread of 225 bps over Treasuries.

BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment, as previously reported.

Starbucks is a Seattle-based specialty coffee retailer.

Issuer:	Starbucks Corp.
Amount:	$3 billion
Description:	Senior notes
Bookrunners:	BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
Senior co-managers:	Scotia Capital (USA) Inc. and Goldman Sachs & Co. LLC
Co-managers:	Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Rabo Securities USA, Inc. and SunTrust Robinson Humphrey, Inc.
Trade date:	May 4
Settlement date:	May 7
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: BBB
Distribution:	SEC registered
2022 notes
Amount:	$500 million
Maturity:	May 7, 2022
Coupon:	1.3%
Price:	99.933
Yield:	1.334%
Spread:	115 bps over 0.375% Treasury due March 31, 2022
Call option:	Make-whole call in whole or in part at any time at Treasuries plus 20 bps
Put option:	At 101 upon change of control
2030 notes
Amount:	$1.25 billion
Maturity:	Nov. 15, 2030
Coupon:	2.55%
Price:	99.725
Yield:	2.58%
Spread:	195 bps over 1.5% Treasury due Feb. 15, 2030
Call features:	Make-whole call at Treasuries plus 30 bps before Aug. 15, 2030; par call after that
Put option:	At 101 upon change of control
2050 notes
Amount:	$1.25 billion
Maturity:	Nov. 15, 2050
Coupon:	3.5%
Price:	99.33
Yield:	3.536%
Spread:	225 bps over 2.375% Treasury due Nov. 15, 2049
Call features:	Make-whole call at Treasuries plus 35 bps before May 15, 2050; par call after that
Put option:	At 101 upon change of control

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.