Published on 2/9/2022 in the Prospect News Investment Grade Daily.
New Issue: Starbucks prices $1.5 billion of floaters due 2024, senior notes due 2032
By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – Starbucks Corp. priced $1.5 billion of senior notes (Baa1/BBB+) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
Starbucks priced $500 million of two-year floating-rate notes at par with a coupon of SOFR plus 42 basis points.
The floaters may be redeemed at par starting on Feb. 14, 2023.
The company priced $1 billion of 3% 10-year notes at 99.811 to yield 3.022%. The notes were sold with a spread of 110 bps over Treasuries.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Scotia Capital (USA) Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment.
Starbucks is a Seattle-based specialty coffee retailer.
| Issuer: | Starbucks Corp.
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Scotia Capital (USA) Inc.
|
| Senior co-managers: | BofA Securities, Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | Fifth Third Securities, Inc., HSBC Securities (USA) Inc., ICBC Standard Bank plc, Loop Capital Markets LLC, Rabo Securities USA, Inc., Standard Chartered Bank, Truist Securities, Inc., Academy Securities, Inc. and Blaylock Van, LLC
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Floating-rate notes
|
| Amount: | $500 million
|
| Issue: | Floating-rate senior notes
|
| Maturity: | Feb. 14, 2024
|
| Coupon: | SOFR plus 42 bps
|
| Price: | Par
|
| Yield: | SOFR plus 42 bps
|
| Call option: | At par starting on Feb. 14, 2023
|
| Change-of-control put: | At 101
|
| Cusip: | 855244BB4
|
|
|
| 2032 notes
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Maturity: | Feb. 14, 2032
|
| Coupon: | 3%
|
| Price: | 99.811
|
| Yield: | 3.022%
|
| Spread: | 110 bps over Treasuries
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Nov. 14, 2031; par call after that
|
| Change-of-control put: | At 101
|
| Cusip: | 855244BC2
|
|
|
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