Starbucks announces pricing for debt buyback offers across eight note series

Starbucks Corporation (NASDAQ: SBUX) announced pricing terms for its tender offers to repurchase eight series of outstanding notes for cash. The company will accept approximately $1.3 billion in aggregate principal amount of notes across the offerings.

The tender offers were divided into two pools. Pool 1 includes three series of notes with maturities from 2028 to 2030, totaling $2 billion in outstanding principal. Pool 2 encompasses five series with longer maturities from 2031 to 2048, representing $3 billion in outstanding principal.

For Pool 1, Starbucks accepted $321.8 million of its 4.800% notes due 2030 at $1,011.44 per $1,000 principal amount. The company also accepted $273.5 million of its 4.500% notes due 2028 at $1,003.75 per $1,000, with a proration factor of 48.60%. No 4.000% notes due 2028 were accepted for purchase.

In Pool 2, the company accepted $200 million of its 4.500% notes due 2048 at $829.71 per $1,000, representing a 68.98% proration factor. Starbucks also accepted $410.2 million of its 5.400% notes due 2035 at $1,030.36 per $1,000 and $110.4 million of its 5.000% notes due 2034 at $1,008.18 per $1,000 with a 44.44% proration factor.

The early tender deadline was May 15, 2026, with settlement scheduled for May 20, 2026. Holders will receive the total consideration plus accrued interest from the last interest payment date.

Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC served as lead dealer managers for the offerings. The tender offers were subject to aggregate caps and maximum amounts, resulting in proration for certain series where demand exceeded available capacity.

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