First Annapolis Advises Target on Credit Card Portfolio Sale to TD Bank Group
MINNEAPOLIS – Target Corporation (NYSE:TGT) announced today that it has completed the sale of its entire consumer credit card portfolio to TD Bank Group (TSX and NYSE: TD) for $5.7 billion, the gross value of the outstanding receivables (―par‖) at the time of closing. As previously announced, the two companies have entered into a seven-year program agreement under which TD will also underwrite, fund and own future Target Credit Card and Target Visa receivables in the United States. Under the program agreement, TD will control risk management policies and oversee regulatory compliance and Target will continue to perform account servicing functions.
“We’re pleased that we’ve completed the sale of our credit card portfolio,” said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation. “We look forward to working with TD Bank Group, a premier financial institution, to provide innovative financial products to our guests and profitably grow the portfolio over time.”
Under the seven-year program agreement, which applies to Target’s U.S. credit card operations, Target will maintain the current deep integration between its financial services operations and its retail operations. The agreement does not have any impact on Target’s 5% REDcard Rewards program. Target team members will continue to provide all servicing for Target Credit Card and Target Visa accounts. The portfolio sale and program agreement are designed to have minimal impact on Target’s current cardholders, guests and the Target team members who support financial products and services.
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First Annapolis Consulting and Goldman Sachs served as financial advisors to Target Corporation.