Starbucks launches $1.1 billion tender offer for eight note series

Starbucks Corporation (NASDAQ: SBUX) announced the commencement of cash tender offers to purchase up to $1.1 billion in aggregate purchase price of eight series of notes, according to a press release statement.

The tender offers are divided into two pools. Pool 1 targets up to $500 million of three note series: 4.800% Senior Notes due 2030, 4.500% Senior Notes due 2028, and 4.000% Senior Notes due 2028. Pool 2 seeks up to $600 million of five note series with maturities ranging from 2031 to 2048.

The tender offers will expire at 5:00 p.m. Eastern Time on June 2, 2026. Holders must tender their notes by 5:00 p.m. Eastern Time on May 15, 2026 to receive the full consideration plus accrued interest. Notes tendered after this early deadline but before expiration will receive reduced consideration.

The company will accept notes based on priority levels within each pool. Pool 1 has acceptance priority levels 1 through 3, while Pool 2 has levels 1 through 5. Notes with higher priority levels will be accepted before those with lower levels.

The 4.500% Senior Notes due 2048 are subject to a sublimit of $200 million in aggregate principal amount. If tender amounts exceed available capacity, purchases will be determined on a prorated basis.

Consideration will be calculated using fixed spreads plus reference yields based on U.S. Treasury securities. Early tender payments of $30 per $1,000 principal amount apply to most series.

Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC serve as lead dealer managers for the offers. The company has appointed D.F. King & Co., Inc. as tender and information agent.

The tender offers are subject to various conditions and the company reserves the right to modify or terminate the offers subject to applicable law.

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