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Starbucks Upsizes Bond Tender Offers After Strong Investor Demand

BY MT Newswires | CORPORATE | 05:56 AM EDT

05:56 AM EDT, 05/18/2026 (MT Newswires) -- Starbucks (SBUX) said late Friday that it has raised the cap on the maximum amount it will repurchase after investors tendered about $2.6 billion of notes by the early deadline, exceeding its original repurchase capacity.

The company said it increased its total acceptance cap to $1.3 billion, including $600 million for one pool of notes and $700 million for another.

It added that it does not expect to accept additional tenders beyond those already submitted.

The tender offers cover multiple bond series with different maturities, and acceptance will be based on priority levels and caps set by the company, the company said.

Starbucks (SBUX) said eligible holders will receive cash plus accrued interest, with settlement expected around May 20.

The final pricing will be determined using Treasury-based yield spreads specified in the offer documents, and the company retains flexibility to adjust terms within defined limits, it added.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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