Starbucks Coffee Company (NASDAQ:SBUX) today announced the renewal of
its unsecured, revolving credit facility, which increases borrowing
capacity from $500 million to $750 million. The credit facility is
scheduled to mature on February 5, 2018, and replaces the current
facility which was set to mature on November 17, 2014. Funds borrowed
under the agreement will complement the company’s strong operational
cash flow and may be used for general corporate purposes including
working capital, capital expenditures, share repurchases and potential
growth opportunities.
“Our new credit agreement increases our borrowing capacity
significantly, while lowering our cost of credit and extending the
availability of funds for the next five years,” said Troy Alstead,
Starbucks chief financial officer. “Augmenting Starbucks already strong
cash flow generation, this credit facility will provide the company with
the flexibility and resources to effectively manage our business and
pursue additional opportunities to build shareholder value.”
Starbucks previous credit facility had the option to request an increase
in the aggregate commitments by up to $500 million for a total aggregate
facility commitment not to exceed $1 billion. The new facility has the
option to request an increase in the aggregate commitments by up to $750
million for a total aggregate facility commitment not to exceed $1.5
billion.
Bank of America, N.A. is serving as the administrative agent, swing line
lender and letter of credit issuer for the facility. Wells Fargo Bank,
N.A. and Citibank, N.A. are acting as co-syndication agents. The
remaining syndicate group is comprised of relationship banks.
About Starbucks Corporation
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting the highest-quality arabica coffee in the
world. Today, with stores around the globe, the company is the premier
roaster and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we bring
the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in our
stores or online at www.starbucks.com.
