8-KExhibits & Filings

TARGET CORP 8-K Report, Exhibit Filing (Jan 12, 2012)

Filed January 12, 2012For Securities:TGT

Summary

Target Corporation (TGT) filed an 8-K on January 12, 2012, primarily to disclose information related to a significant debt issuance. The company successfully offered and sold an aggregate principal amount of $2.5 billion in notes. This issuance comprises $1 billion in 2.900% Fixed Rate Notes due 2022 and $1.5 billion in Floating Rate Notes due 2013. The filing includes the forms of these notes and related legal opinions as exhibits, in connection with a previously filed Form S-3 Registration Statement.

Key Highlights

  • 1Target Corporation issued $2.5 billion in new debt.
  • 2The debt issuance consists of two tranches: $1 billion in Fixed Rate Notes and $1.5 billion in Floating Rate Notes.
  • 3The Fixed Rate Notes have a coupon of 2.900% and mature in 2022.
  • 4The Floating Rate Notes mature in 2013.
  • 5This filing is related to a Form S-3 Registration Statement (File No. 333-163489).
  • 6Key exhibits filed include the forms of the notes and legal opinions from Faegre Baker Daniels LLP.

Frequently Asked Questions

While the 8-K doesn't explicitly state the use of proceeds, debt issuances are typically used to fund operations, capital expenditures, acquisitions, or to refinance existing debt. Investors should refer to Target's other SEC filings or investor relations for specific details on the use of these funds.

The 2.900% rate indicates the cost of borrowing for this portion of the debt. This rate is relatively low, suggesting favorable borrowing conditions at the time of issuance, which can be positive for the company's interest expense management.

Fixed Rate Notes pay a constant interest rate throughout their term, providing predictable interest expense. Floating Rate Notes have an interest rate that adjusts periodically based on a benchmark rate (e.g., LIBOR), meaning interest payments can fluctuate over time.

A Form S-3 is a registration statement that allows certain eligible issuers, like Target, to register securities offerings on a delayed or continuous basis. It's a streamlined process for established public companies and indicates that Target was preparing to potentially offer or sell securities.