SEATTLE Starbucks Corp. entered into an agreement to issue up to $1 billion of unsecured commercial paper notes to fund general corporate purposes, which includes “working capital, capital expenditures, acquisitions and share repurchases,” the company said Tuesday.
Commercial paper typically is short term and unsecured, meaning the notes are backed by the company’s integrity as a borrower rather than by collateral. The notes will be offered on a private placement basis, the company reported, and while the maturities will vary they will not exceed 397 days from the date of issue.
The Starbucks board of directors said in a regulatory filing that it authorized the program “to serve as an alternative source of funding for the company, but not as an increase to the company’s overall debt.”
Banc of America Securities LLC and Goldman, Sachs & Co. will act as dealers. JPMorgan Chase Bank N.A will act as issuing and paying agent.
Starbucks operates or licenses more than 13,000 namesake coffeehouses worldwide.