Target replaces $1 billion 364-day unsecured revolving credit facility

By William Gullotti

Buffalo, N.Y., Oct. 18 – Target Corp. signed a new $1 billion 364-day unsecured revolving credit facility with Bank of America, NA as administrative agent on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

As with the $1 billion 364-day it replaces, there is a $500 million accordion feature.

Likewise, borrowings bear interest at SOFR plus a credit spread adjustment plus a margin. The margin is determined by the type of drawdown as well as Target’s debt ratings.

The new revolver will expire on Oct. 16, 2024, on which date Target may elect to convert all loans outstanding under the credit agreement into a term loan that is payable in one year.

BofA Securities, Inc., Citibank, NA, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and U.S. Bank NA are the joint lead arrangers and joint bookrunners, with Citibank also acting as syndication agent.

At closing, Target simultaneously terminated its prior 364-day revolver, signed Oct. 25, 2022 with the same syndicate, which was scheduled to expire on Oct. 24.

Target is a discount merchandise retailer based in Minneapolis.

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