The unsecured five-year revolver gives the Seattle-based coffee seller the option to ask lenders to borrow up to $1 billion. Funds will be used for general corporate purposes including working capital, capital expenditures, share repurchases and potential acquisitions.
"We believe our strong cash flow generated from operations will continue to enable us to execute our aggressive growth strategy, which includes targeting 1,800 new stores in fiscal 2006, 850 of which will be Company-operated locations," said finance chief Michael Casey. "This credit facility will provide the Company with the flexibility and resources to continue our successful share repurchase activities as well as opportunistically pursue new growth prospects."
Starbucks rose 27 cents Monday to $52.30.