Published on 1/17/2023 in the Prospect News Investment Grade Daily.
New Issue: Target prices $1.65 billion of notes in 10- and 30-year tranches
By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – Target Corp. priced $1.65 billion of fixed-rate notes (A2/A/A) in two tranches on Tuesday, according to a 424B2 filed with the Securities and Exchange Commission.
Target priced $500 million of 4.4% 10-year notes at 99.769 to yield 4.429%, or a spread of 90 basis points over Treasuries.
The company also priced $1.15 billion of 4.8% 30-year notes at 99.922 to yield 4.805%, or a spread of 115 bps over Treasuries.
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.
|
| Amount: | $1.65 billion
|
| Issue: | Notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Senior co-managers: | U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Scotia Capital (USA) Inc., Academy Securities, Inc., Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Faegre Drinker Biddle & Reath LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 24
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | Jan. 15, 2033
|
| Coupon: | 4.4%
|
| Price: | 99.769
|
| Yield: | 4.429%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 15 bps before Oct.15, 2032; thereafter at par
|
| Cusip: | 87612EBQ8
|
|
|
| 30-year notes
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| Amount: | $1.15 billion
|
| Maturity: | Jan. 15, 2053
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| Coupon: | 4.8%
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| Price: | 99.922
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| Yield: | 4.805%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 20 bps before July 15, 2052; thereafter at par
|
| Cusip: | 87612EBR6
|
|
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