Target Halts Sale of Credit Card Receivables (TGT, JPM)
Citing an inability to get “appropriate terms,” Target Corp. (NYSE: TGT) today announced that it would suspend its efforts to sell its credit card receivables until later this year. The company also said that it would retire early its $2.8…
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Citing an inability to get “appropriate terms,” Target Corp. (NYSE: TGT) today announced that it would suspend its efforts to sell its credit card receivables until later this year. The company also said that it would retire early its $2.8 billion receivables financing package with a unit of JPMorgan Chase & Co. (NYSE: JPM).
The early retirement of the Chase financing, which is not due until the end of 2013, means that the company will pay Chase a make-whole fee in addition to the $2.8 billion. The company said that the early retirement of the financing package will cost Target about $0.08/share in fourth-quarter earnings.
Target’s share price is down about -2% in pre-market trading this morning, at $49.88 in a 52-week range of $45.28-$56.44.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
