On June 13, 2025, Starbucks Corporation announced the establishment of a new $3.0 billion Five-Year Credit Agreement. The agreement, signed with Bank of America, N.A. as the Administrative Agent, along with a consortium of financial institutions including Citibank, Morgan Stanley, U.S. Bank, and Wells Fargo, aims to enhance the company's financial flexibility. The new credit facility replaces a previous agreement from September 16, 2021, which has been terminated in conjunction with the new arrangement. The Five-Year Credit Agreement mandates Starbucks to adhere to certain financial covenants, such as maintaining a minimum fixed charge coverage ratio of 2.50 to 1, and includes standard default provisions. This strategic financial move underscores Starbucks' commitment to maintaining strong financial health and operational agility.
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