Starbucks Corp. sold $1 billion of bonds to help finance itsplan to pay out more money to shareholders.

The world's biggest coffee chain offered bonds in two parts,according to a person with knowledge of the matter. The longestportion of the offering, a 30-year security, yields 97 basis pointsmore than Treasuries, down from initial talk of between 1.20percentage points and 1.25 percentage points, said the person, whoasked not to be identified as the deal is private.

Proceeds will be used for cash dividends, share buybacks,possible acquisitions and other company needs, according to afiling Monday. Earlier this month Starbucks said it plans to return$15 billion to stockholders through a combination of dividends andequity repurchases over a three-year period starting next year. Italso said it was boosting its quarterly dividend to 30 cents ashare from 20 cents.