June 17 U.S. retailer Target Corp
increased yields on Tuesday to sell $2 billion of bonds in a
two-part offering and plans to use part of the proceeds to buy
back as much as $1 billion of debt.
The company priced its five-year bonds to yield 2.348
percent on maturity, which is about 0.6 percentage point more
than comparable U.S. Treasuries. Target priced its 10-year bonds
to yield 3.553 percent, which is about 0.9 percentage points
more than the standard rate.
Target said it planned to use proceeds from the sale of
bonds to buy back as much as $1 billion of existing debt from
among $3.76 billion of certain notes and debentures maturing
between 2028 and 2038.
Target was the victim of a cyber attack in December that
resulted in the theft of at least 40 million payment card
numbers and 70 million other pieces of customer data.
Since then, the company has announced plans to overhaul its
information security practices and bolster its technology
In May Target reported a 16 percent drop in first-quarter
profit and lowered its adjusted full-year profit forecast to
$3.60-$3.90 per share from $3.85-$4.15 to account for increased
discounting and investments in e-commerce.
The company's share price has fallen 16.73 percent in the
last 12 months to close at $58.17 on the New York Stock Exchange
(Reporting by Ankit Ajmera and Tanvi Mehta in Bangalore;
Editing by Lisa Shumaker)