NEW YORK (Standard&Poor's) Dec. 3, 2013--Standard&Poor's Ratings Services today assigned its 'A-' issue-level rating to Starbucks Corp.'s proposed $750 million senior unsecured notes. The company will issue the notes under shelf registration in two tranches due 2016 and 2018. Starbucks plans to use the proceeds to fund a portion of the recent approximately $2.78 billion arbitration award relating to the 2011 termination of its distribution agreement with Kraft Foods. The company will use the remaining proceeds for general corporate purposes. The company previously paid the approximately $2.23 billion damages portion of the arbitration award, which it funded primarily through cash on hand and proceeds from short-term investments, supplemented by short-term borrowings under its commercial paper program.
