Target offers to purchase 10 series of notes for up to $1.75 billion

By Taylor Fox

New York, Sept. 23 – Target Corp. commenced cash tender offers in which it will pay up to $1.75 billion for 10 series of debt securities, according to a news release.

The offers are subject to proration procedures and order of priority.

The securities included in the offer, in order of priority, and the offer amount are as follows:

• $617.26 million of 7% notes due 2038 (Cusip: 87612EAU0) at a price equal to the 1.25% U.S. Treasury due May 15, 2050 plus 70 basis points for a hypothetical total consideration of $1,704.19;

• $501,061,000 of 6.5% notes due 2037 (Cusip: 87612EAR7) at a price equal to the 1.25% U.S. Treasury due May 15, 2050 plus 70 bps for a hypothetical total consideration of $1,624.58;

• $1.5 billion of 4% notes due 2042 (Cusip: 87612EBA3) at a price equal to the 1.25% U.S. Treasury due May 15, 2050 plus 70 bps for a hypothetical total consideration of $1,327.63;

• $1 billion of 3.625% notes due 2046 (Cusip: 87612EBF2) at a price equal to the 1.25% U.S. Treasury due May 15, 2050 plus 78 bps for a hypothetical total consideration of $1,278.95;

• $750 million of 3.9% notes due 2047 (Cusip: 87612EBG0) at a price equal to the 1.25% U.S. Treasury due May 15, 2050 plus 78 bps for a hypothetical total consideration of $1,342.89;

• $349.63 million of 6.35% debentures due 2032 (Cusip: 87612EAK2) at a price equal to the 0.625% U.S. Treasury due Aug. 15, 2030 plus 90 bps for a hypothetical total consideration of $1,524.30;

• $213.15 million of 7% debentures due 2031 (Cusip: 87612EAF3) at a price equal to the 0.625% U.S. Treasury due Aug. 15, 2030 plus 85 bps for a hypothetical total consideration of $1,543.24;

• $83,406,000 of 6.65% debentures due 2028 (Cusip: 239753DL7) at a price equal to the 0.625% U.S. Treasury due Aug. 15, 2030 plus 55 bps for a hypothetical total consideration of $1,404.05;

• $104,514,000 of 6.75% debentures due 2028 (Cusip: 239753DJ2) at a price equal to the 0.625% U.S. Treasury due Aug. 15, 2030 plus 50 bps for a hypothetical total consideration of $1,386.27; and

• $1 billion of 2.65% notes due 2030 (Cusip: 87612EBK1) at a price equal to the 0.625% U.S. Treasury due Aug. 15, 2030 plus 55 bps for a hypothetical total consideration of $1,130.86.

Holders of securities validly tendered and accepted prior to the early tender deadline, which is 5 p.m. ET on Oct. 6, will receive the total consideration, which includes an early tender premium of $30 per $1,000 of securities accepted for purchase, plus interest.

The offer will expire at 12:59 p.m. ET on Oct. 21, unless extended or earlier terminated.

Tendered securities may be withdrawn on or prior to the early tender deadline.

The total consideration will be determined by reference to the U.S. Treasury Security at 10 a.m. ET on Oct. 7.

The settlement date for securities tendered by the early tender deadline is expected for Oct. 8.

The settlement date for securities following the early tender deadline is expected for Oct. 23, assuming the maximum tender amount is not purchased on the early settlement date.

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745), Deutsche Bank Securities Inc. (212 250-2955, 866 627-0391) and Goldman Sachs & Co. LLC (212 902-6351, 800 828-3182) are lead dealer managers.

Barclays Capital Inc., BofA Securities and U.S. Bancorp Investments, Inc. are dealer managers.

Global Bondholder Services Corp. (866 924-2200, 212 430-3774; contact@gbsc-usa.com) is information agent and tender agent.

Target is a discount merchandise retailer based in Minneapolis.

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