Target Corp 8-K, filed Oct 18, 2021
Target Corp (TGT)
About this 8-K
Target Corp filed this 8-K on October 18, 2021.
Items reported
- Item 1.01: Entered into a material agreement
- Item 1.02: Ended a material agreement
- Item 2.03: New debt or off-balance-sheet obligation
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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CURRENT REPORT
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| Item 1.01. | Entry into a Material Definitive Agreement. |
On October 18, 2021, Target Corporation (“Target”) entered into a Five-Year Credit Agreement with certain lenders, Bank of America, N.A. as administrative agent and Citibank, N.A. as syndication agent, for a $3.0 billion unsecured revolving credit facility (the “Credit Agreement”). Target may increase the credit facility commitments up to an additional $1.0 billion, subject to the satisfaction of certain conditions. The Credit Agreement will expire in October 2026, unless extended for up to two additional years under the terms of the Credit Agreement. Borrowings under the Credit Agreement will bear interest at the rates specified in the Credit Agreement, which vary based on the type of loan and Target’s debt ratings. The Credit Agreement contains a financial covenant regarding the leverage ratio of Target and its subsidiaries. The Credit Agreement also contains other customary covenants and events of default for credit facilities of this type. Upon an event of default that is not cured or waived within any applicable cure periods, in addition to other remedies that may be available to the lenders, the obligations under the Credit Agreement may be accelerated.
A copy of the Credit Agreement will be filed as an Exhibit to Target’s Quarterly Report on Form 10-Q for the quarter ended October 30, 2021.
| Item 1.02. | Termination of a Material Definitive Agreement. |
In connection with entering into the Credit Agreement described above, on October 18, 2021, Target terminated its prior $2.5 billion Five-Year Credit Agreement, dated as of October 5, 2016, with certain lenders, Bank of America, N.A. as administrative agent and Citibank, N.A. as syndication agent, as previously amended on August 7, 2017 and August 6, 2018 (the “Prior Credit Agreement”). The Prior Credit Agreement was scheduled to expire in October 2023. The other material terms and conditions of the Prior Credit Agreement were substantially similar to the material terms and conditions of the Credit Agreement described above under Item 1.01.
| Item 2.03. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 above is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TARGET CORPORATION | |
| Date: October 18, 2021 | /s/ Don H. Liu |
| Don H. Liu | |
| Executive Vice President and Chief Legal & Risk Officer |