SEATTLE Starbucks Corp. sold $550 million in 10-year senior notes this week, with the proceeds earmarked for debt repayment and share repurchases, the company reported.
Goldman Sachs & Co., Banc of America Securities LLC and Citigroup Global Markets Inc. were the joint lead managers for the sale, according to a publicly filed prospectus. The public sale of the $550 million in 6.25-percent senior notes due August 15, 2017 netted Starbucks about $545.3 million after fees.
The notes were rated Baa1 by Moody’s Investors Service Inc. and BBB+ by Standard & Poor’s Ratings Services, in each case with a stable outlook, Starbucks also said.
Seattle-based Starbucks, which operates or licenses about 14,400 namesake coffeehouses worldwide, reported that as of July 1, it had about $2.5 billion in total liabilities on a consolidated basis, of which $880 million represented debt under outstanding commercial paper. The company’s latest annual revenues for the year ended Oct. 2006 totaled $7.9 billion.