Target's first foray outside US market with Zellers deal
17 Jan '11
4 min read
Target Credit Card Receivables Target also announced today that it intends to actively pursue the sale of its credit card receivables portfolio, which totaled US$6.7 billion as of October 30, 2010. First Annapolis has been engaged to advise Target in this process.
Target believes that improved portfolio performance, the successful launch of its REDcard Rewards program, and conditions of the capital markets create an attractive opportunity to engage interested parties regarding a possible sale of these assets. In addition to an appropriate financial arrangement, Target intends to execute a transaction in which it would retain operational control of its strategically important financial services business, including its deep integration with Target's retail operations. Additionally, a transaction would be expressly designed to have minimal impact on Target's guests or the Target team members who provide financial products and services to them.
Target intends to execute a transaction only if appropriate strategic and financial conditions are met. Any proceeds to Target resulting from a potential transaction would be net of existing third party interests in the portfolio.
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