Target prices tender offers for 10 series of notes, lifts cap

By Taylor Fox

New York, Oct. 7 – Target Corp. announced pricing on its cash tender offers for 10 series of notes, according to a Wednesday news release.

As announced on Tuesday, tenders for $1.768 billion principal amount of notes had been tendered by 5 p.m. ET on Oct. 6, the early tender deadline.

In addition, the company increased the maximum tender amount to cover all of the early tendered notes. With pricing, the maximum tender amount has now been set at $2.246 billion.

Originally, the company offered to purchase notes for up to $1.75 billion aggregate purchase price, excluding interest.

The securities tendered by the early tender deadline and accepted for purchase, listed in order of acceptance priority level and with the total consideration per $1,000 principal amount, are as follows:

• $69,896,000 of the $617.26 million outstanding 7% notes due 2038 (Cusip: 87612EAU0) at a price of $1,668.85, based on the 1.25% U.S. Treasury due May 15, 2050 plus 70 basis points;

• $104,747,000 of the $501,061,000 outstanding 6.5% notes due 2037 (Cusip: 87612EAR7) at a price of $1,590.81, based on the 1.25% U.S. Treasury due May 15, 2050 plus 70 bps;

• $391.67 million of the $1.5 billion outstanding 4% notes due 2042 (Cusip: 87612EBA3) at a price of $1,291.62, based the 1.25% U.S. Treasury due May 15, 2050 plus 70 bps;

• $394,017,000 of the $1 billion outstanding 3.625% notes due 2046 (Cusip: 87612EBF2) at a price of $1,239.50, based on the 1.25% U.S. Treasury due May 15, 2050 plus 78 bps;

• $224,291,000 of the $750 million outstanding 3.9% notes due 2047 (Cusip: 87612EBG0) at a price of $1,300.85, based on the 1.25% U.S. Treasury due May 15, 2050 plus 78 bps;

• $48,155,000 of the $349.63 million outstanding 6.35% debentures due 2032 (Cusip: 87612EAK2) at a price of $1,508.40, based on the 0.625% U.S. Treasury due Aug. 15, 2030 plus 90 bps;

• $5,546,000 of the $213.15 million outstanding 7% debentures due 2031 (Cusip: 87612EAF3) at a price of $1,528.40, based on the 0.625% U.S. Treasury due Aug. 15, 2030 plus 85 bps;

• $2,331,000 of the $83,406,000 outstanding 6.65% debentures due 2028 (Cusip: 239753DL7) at a price of $1,393.56, based on the 0.625% U.S. Treasury due Aug. 15, 2030 plus 55 bps;

• $7,645,000 of the $104,514,000 outstanding 6.75% debentures due 2028 (Cusip: 239753DJ2) at a price of $1,376.58, based on the 0.625% U.S. Treasury due Aug. 15, 2030 plus 50 bps; and

• $519,791,000 of the $1 billion outstanding 2.65% notes due 2030 (Cusip: 87612EBK1) at a price of $1,119.60, based on the 0.625% U.S. Treasury due Aug. 15, 2030 plus 55 bps.

The total consideration includes an early tender premium of $30 per $1,000 of securities tendered by the early tender deadline.

Holders will also receive accrued interest to the settlement date.

The early settlement date is on Oct. 8.

The offer is set to expire at 11:59 p.m. ET on Oct. 21, but Target said it does not expect to accept any further tenders of securities after the early deadline.

The final settlement date would have been Oct. 23.

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, 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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