SBUX » Topics » Revolving Credit Facility and Commercial Paper Program

This excerpt taken from the SBUX 10-K filed Nov 20, 2009.
Revolving Credit Facility and Commercial Paper Program
 
The Company has a $1 billion unsecured credit facility (the “credit facility”) with various banks, of which $100 million may be used for issuances of letters of credit. The credit facility is available for working capital, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases. The credit facility is currently set to terminate in August 2011. On October 31, 2008, the Company entered into an amendment to its facility that, among other changes, increased the interest rate range for borrowings under the credit facility to 0.21% to 0.67% over LIBOR or the greater of the bank prime rate or the Federal Funds Rate plus 0.50%. The specific spread over LIBOR will continue to depend upon the Company’s long-term credit ratings assigned by Moody’s and Standard & Poor’s rating agencies and the Company’s coverage ratio. The credit facility contains provisions requiring the Company to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio which measures the Company’s ability to cover financing expenses.
 
Under the Company’s commercial paper program it may issue unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $1 billion, with individual maturities that may vary, but not exceed 397 days from the date of issue. The program is backstopped by the Company’s credit facility, and the combined


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borrowing limit is $1 billion for the commercial paper program and the credit facility. The Company may issue commercial paper from time to time, and the proceeds of the commercial paper financing will be used for working capital needs, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases.
 
As of September 27, 2009, the Company also had $14.1 million in letters of credit outstanding under the credit facility, leaving a total of $985.9 million in remaining borrowing capacity under the combined credit facility and commercial paper program. As of September 28, 2008, letters of credit totaling $15.9 million were outstanding.
 
These excerpts taken from the SBUX 10-K filed Nov 24, 2008.
Revolving Credit Facility and Commercial Paper Program
 
The Company has a $1 billion unsecured credit facility (the “facility”) with various banks, of which $100 million may be used for issuances of letters of credit. The facility is available for working capital, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases. The facility is currently set to terminate in August 2011. The interest rate for borrowings under the facility as of September 28, 2008 ranged from 0.11% to 0.27% over LIBOR or an alternate base rate, which is the greater of the bank prime rate or the Federal Funds Rate plus 0.50%. On October 31, 2008, the Company entered into an amendment to its facility that, amongst other changes, increased the interest rate range for borrowings under the facility to 0.21% to 0.67% over LIBOR or the greater of the bank prime rate or the Federal Funds Rate plus 0.50%. The specific spread over LIBOR will continue to depend upon the Company’s long-term credit ratings assigned by Moody’s and Standard & Poor’s rating agencies and the Company’s coverage ratio. The facility contains provisions requiring the Company to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio which measures the Company’s ability to cover financing expenses.
 
The Company established a commercial paper program (the “program”) in March 2007. Under the program the Company may issue unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $1 billion, with individual maturities that may vary, but not exceed 397 days from the date of issue. The program is backstopped by the Company’s revolving credit facility, and the combined borrowing limit is $1 billion


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for the program and the facility. The Company may issue commercial paper from time to time, and the proceeds of the commercial paper financing will be used for working capital needs, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases.
 
As of September 28, 2008, the Company also had $15.9 million in letters of credit outstanding under the revolving credit facility, leaving a total of $270.9 million in remaining borrowing capacity under the combined revolving credit facility and commercial paper program. As of September 30, 2007, letters of credit totaling $12.9 million were outstanding.
 
Revolving
Credit Facility and Commercial Paper Program



 



The Company has a $1 billion unsecured credit facility (the
“facility”) with various banks, of which
$100 million may be used for issuances of letters of
credit. The facility is available for working capital, capital
expenditures and other corporate purposes, which may include
acquisitions and share repurchases. The facility is currently
set to terminate in August 2011. The interest rate for
borrowings under the facility as of September 28, 2008
ranged from 0.11% to 0.27% over LIBOR or an alternate base rate,
which is the greater of the bank prime rate or the Federal Funds
Rate plus 0.50%. On October 31, 2008, the Company entered
into an amendment to its facility that, amongst other changes,
increased the interest rate range for borrowings under the
facility to 0.21% to 0.67% over LIBOR or the greater of the bank
prime rate or the Federal Funds Rate plus 0.50%. The specific
spread over LIBOR will continue to depend upon the
Company’s long-term credit ratings assigned by Moody’s
and Standard & Poor’s rating agencies and the
Company’s coverage ratio. The facility contains provisions
requiring the Company to maintain compliance with certain
covenants, including a minimum fixed charge coverage ratio which
measures the Company’s ability to cover financing expenses.


 



The Company established a commercial paper program (the
“program”) in March 2007. Under the program the
Company may issue unsecured commercial paper notes, up to a
maximum aggregate amount outstanding at any time of
$1 billion, with individual maturities that may vary, but
not exceed 397 days from the date of issue. The program is
backstopped by the Company’s revolving credit facility, and
the combined borrowing limit is $1 billion





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for the program and the facility. The Company may issue
commercial paper from time to time, and the proceeds of the
commercial paper financing will be used for working capital
needs, capital expenditures and other corporate purposes, which
may include acquisitions and share repurchases.


 



As of September 28, 2008, the Company also had
$15.9 million in letters of credit outstanding under the
revolving credit facility, leaving a total of
$270.9 million in remaining borrowing capacity under the
combined revolving credit facility and commercial paper program.
As of September 30, 2007, letters of credit totaling
$12.9 million were outstanding.


 




This excerpt taken from the SBUX 10-K filed Nov 29, 2007.
Revolving Credit Facility and Commercial Paper Program
 
The Company has a $1 billion unsecured credit facility (the “facility”) with various banks, of which $100 million may be used for issuances of letters of credit. The facility is available for working capital, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases. The facility is currently set to terminate in August 2011. The interest rate for borrowings under the facility ranges from 0.11% to 0.27% over LIBOR or an alternate base rate, which is the greater of the bank prime rate or the Federal Funds Rate plus 0.50%. The specific spread over LIBOR will depend upon the Company’s long-term credit ratings assigned by Moody’s and Standard and Poor’s rating agencies and the Company’s coverage ratio. The facility contains provisions requiring the Company to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio which measures the Company’s ability to cover financing expenses. As of September 30, 2007 and October 1, 2006, the Company was in compliance with each of these covenants.
 
As of September 30, 2007, the Company had no borrowings under this credit facility. As of October 1, 2006, the Company had $700 million outstanding under the facility with a weighted average interest rate of 5.5%.
 
In March 2007, the Company established a commercial paper program (the “program”). Under the program the Company may issue unsecured commercial paper notes, up to a maximum aggregate amount outstanding at any time of $1 billion, with individual maturities that may vary, but not exceed 397 days from the date of issue. The program is backstopped by the Company’s revolving credit facility, and the combined borrowing limit is $1 billion for the program and the facility. The Company may issue commercial paper from time to time, and the proceeds of the commercial paper financing will be used for working capital, capital expenditures and other corporate purposes, which may include acquisitions and share repurchases.
 
As of September 30, 2007, the Company had $710 million in borrowings outstanding under the program with a weighted average interest rate of 5.4%.
 
As of September 30, 2007, the Company also had $12.9 million in letters of credit outstanding under the revolving credit facility, leaving a total of $275 million in remaining borrowing capacity under the combined revolving credit facility and commercial paper program. As of October 1, 2006, a letter of credit of $11.9 million was outstanding.
 
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