By Angela McDaniels
Tacoma, Wash., March 13 - Target Corp. began tender offers to purchase for cash its debt securities listed in the tables below, according to a company news release.
The company is offering to purchase any and all of the notes listed in the first table and a maximum amount of the notes listed in the second table.
The any and all tender offers will expire at 11:59 p.m. ET on March 20, and the maximum tender offers will expire at 11:59 p.m. ET on April 10.
The cap on the maximum tender offers is not on the principal amount of notes purchased but rather on the purchase price. The maximum payment amount will be $1.2 billion less the total consideration paid in the any and all tender offers.
All maximum tender offer notes of a series with a higher acceptance priority level will be accepted for purchase before any tendered notes with a lower acceptance priority level are accepted. If there are enough funds to purchase some, but not all, of a series of notes, the amount of those notes purchased will be on a prorated basis.
Holders of maximum tender offer notes must tender their notes by 5 p.m. ET on March 27, the early tender date, to be eligible to receive the total consideration, which will include an early tender payment of $30.00 per $1,000 principal amount of notes.
The total consideration for each series of notes will be determined using a fixed spread over the yield based on the bid-side price of a reference Treasury security. Pricing will be fixed at 2 p.m. ET on March 20 for the any and all tender offers and at 2 p.m. ET on March 28 for the maximum tender offers.
Holders will also receive accrued interest up to but excluding the payment date, which is expected to be March 21 for the any and all tender offers and April 11 for the maximum tender offers.
Only registered holders of notes can participate in the offers. A beneficial owner of securities that are held of record by a custodian bank, broker, dealer, commercial bank, trust company or other nominee must contact the nominee and request that such nominee tender the securities on the beneficial owner's behalf.
The lead dealer managers are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) or J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811). The tender and information agent is Global Bondholder Services Corp. (866 873-7700 or, for bankers and brokers, 212 430-3774).
Target is a Minneapolis-based retailer.
Target any and all tender offers
| Notes | Amount outstanding | Fixed spread | Reference Treasury
|
| 6.75% debentures due 2028 | $170 million | 75 bps | 2.75% due Nov. 15, 2042
|
| 6.65% debentures due 2028 | $154.9 million | 75 bps | 2.75% due Nov. 15, 2042
|
| 7% debentures due 2031 | $354 million | 75 bps | 2.75% due Nov. 15, 2042
|
|
|
| Target maximum tender offers
|
| Notes | Amount outstanding | Acceptance | Fixed spread | Reference Treasury
|
| priority level
|
| 7% notes due 2038 | $2.25 billion | 1 | 90 bps | 2.75% due Nov. 15, 2042
|
| 6.35% debentures due 2032 | $550 million | 2 | 80 bps | 2.75% due Nov. 15, 2042
|
| 6.5% notes due 2037 | $1.25 billion | 3 | 95 bps | 2.75% due Nov. 15, 2042
|
| 9.875% debentures due 2020 | $38.65 million | 4 | 55 bps | 2% due Feb. 15, 2023
|
| 8.875% debentures due 2022 | $21,628,000 | 5 | 80 bps | 2% due Feb. 15, 2023
|
| 9.7% debentures due 2021 | $27,715,000 | 6 | 65 bps | 2% due Feb. 15, 2023
|
| 8.8% debentures due 2022 | $40.83 million | 7 | 80 bps | 2% due Feb. 15, 2023
|
| 9% debentures due 2021 | $16,652,000 | 8 | 70 bps | 2% due Feb. 15, 2023
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
