By Jennifer Chiou
New York, April 11 - Target Corp. announced the close of its tender offers for eight series of notes. The cap on the tender offers was a purchase price of $1,114,268,003.
Only a portion of one series of notes was accepted. Of the $1,127,303,000 of first-priority 7% notes due 2038 tendered in the offer, $760,746,000 were accepted. The accepted amount represents 33.81% of the $2.25 billion outstanding amount of those notes.
The proration factor is about 67%.
The company paid a total consideration of $1,464.73 for each $1,000 principal amount of notes tendered by 5 p.m. ET on March 27, the early tender date. The late tender consideration for the notes was $1,434.73.
Holders also received accrued interest up to but excluding the payment date, which was expected to be April 11.
The tender amount for the other series of notes is listed in the table below. The notes are listed in order of acceptance priority level.
As announced on March 27, the company increased the cap - it was previously expected to be $913,268,003 - and said it expected to purchase 68% of the tendered amount of 7% notes.
As of the early tender date, holders had overall tendered $1,611,519,000 of notes.
Holders had to tender their notes by the early tender date to be eligible to receive the total consideration, which includes an early tender payment of $30.00 per $1,000 principal amount of notes.
The total consideration for each series of notes was determined using a fixed spread over the yield based on the bid-side price of a reference Treasury security. Pricing was fixed at 2 p.m. ET on March 28.
As previously reported, the company began tender offers for 11 series of its debt securities on March 13.
The company offered to purchase any and all of three series of notes and a maximum amount of eight series of notes.
The any and all tender offers expired at 11:59 p.m. ET on March 20, and the maximum tender offers expired at 11:59 p.m. ET on April 10.
In the any and all offers, holders tendered the following:
• $34,521,000, or 20.31%, of the company's $170 million of 6.75% debentures due 2028;
• $39,073,000, or 25.22%, of its $154.9 million of 6.65% debentures due 2028; and
• $135,668,000, or 38.32%, of its $354 million of 7% debentures due 2031.
For each $1,000 principal amount, the company paid $1,311.50 for the 6.75% debentures, $1,309.07 for the 6.65% debentures and $1,395.38 for the 7% debentures.
The lead dealer managers were 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 was Global Bondholder Services Corp. (866 873-7700 or, for bankers and brokers, 212 430-3774).
Target is a Minneapolis-based retailer.
Maximum tender results
| Notes | Amount outstanding | Amount tendered | Amount accepted
|
| 7% notes due 2038 | $2.25 billion | $1,127,303,000 | $760,746,000
|
| 6.35% debentures due 2032 | $550 million | $90.32 million | $0
|
| 6.5% notes due 2037 | $1.25 billion | $379.36 million | $0
|
| 9.875% debentures due 2020 | $38.65 million | $1,858,000 | $0
|
| 8.875% debentures due 2022 | $21,628,000 | $9.06 million | $0
|
| 9.7% debentures due 2021 | $27,715,000 | $1,189,000 | $0
|
| 8.8% debentures due 2022 | $40.83 million | $1,819,000 | $0
|
| 9% debentures due 2021 | $16,652,000 | $1,887,000 | $0
|
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