Dec. 2 (Bloomberg) -- Starbucks Corp., which said last month that it would pay Mondelez International Inc. $2.79 billion to settle a distribution dispute, borrowed $750 million to help fund the outlay.
The world’s largest coffee-shop operator sold $400 million of 0.875 percent, three-year bonds that yield 38 basis points more than similar-maturity Treasuries and $350 million of 2 percent, five-year notes that pay 63 more than benchmarks, according to data compiled by Bloomberg. Proceeds may be used to fund a portion of the arbitration award, Seattle-based Starbucks said today in a regulatory filing.
The payment consists of $2.23 billion in damages and $557 million in interest and attorneys’ fees and settles a dispute that began in 2010, when Starbucks offered $750 million to end an agreement through which Mondelez, then known as Kraft Foods Inc., distributed its coffee to food retailers.
Kraft rejected the offer, and Starbucks sought to wrest control of its packaged coffee business as revenue grew and surpassed gains in other segments.
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