Published on 1/19/2022 in the Prospect News Investment Grade Daily.
New Issue: Target prices $2 billion of notes in five- and 30-year tranches
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Jan. 19 – Target Corp. priced $2 billion of fixed-rate notes (A2/A/A) in two tranches on Wednesday, according to a 424B2 filed with the Securities and Exchange Commission.
Target priced $1 billion of 1.95% five-year notes at 99.83 to yield 1.986%, or a spread of 38 basis points over Treasuries, compared to talk in the 60 bps, a market source told Prospect News.
The company also priced $1 billion of 2.95% 30-year notes at 99.056 to yield 2.998%, or a spread of 85 bps over Treasuries, versus talk in the 100 bps area over Treasuries.
Both tranches priced on top of where they launched.
Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes.
The discount merchandise chain is based in Minneapolis.
Issuer: | Target Corp.
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Amount: | $2 billion
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Issue: | Notes
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Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
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Senior co-managers: | U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
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Co-managers: | Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Academy Securities, Inc., Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
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Trade date: | Jan. 19
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Settlement date: | Jan. 24
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Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: A
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Distribution: | SEC registered
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Five-year notes
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Amount: | $1 billion
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Maturity: | Jan. 15, 2027
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Coupon: | 1.95%
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Price: | 99.83
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Yield: | 1.986%
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Spread: | Treasuries plus 38 bps
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Call features: | Make-whole call at greater of par or Treasuries plus 10 bps before Dec.15, 2026; thereafter at par
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Price guidance: | Treasuries plus 60 bps area
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Cusip: | 87612EBM7
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30-year notes
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Amount: | $1 billion
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Maturity: | Jan. 15, 2052
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Coupon: | 2.95%
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Price: | 99.056
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Yield: | 2.998%
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Spread: | Treasuries plus 85 bps
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Call features: | Make-whole call at greater of par or Treasuries plus 15 bps before July 15, 2051; thereafter at par
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Price guidance: | Treasuries plus 100 bps area
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Cusip: | 87612EBN5
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