Target to sell credit card portfolio to TD Bank
discount retailer said it cheap Canada Goose wanted to unload the Canada Goose online business.
A Target employee returns carts to the store in Falls Church, Virginia May 14, 2012. REUTERS/Kevin cheap canada goose uk Lamarque
TD will pay an amount equal to the gross value of the outstanding receivables most canada goose factory sale recently valued at $5.9 canada goose billion Canada Goose Coats On Sale when the deal closes, and signed a canada goose uk outlet 7 year agreement to be canada goose black friday sale the exclusive issuer of Target branded Visa and private label cards in the United States.
The deal gives Toronto based TD, the sixth largest bank in North America, a buy canada goose jacket way to expand its credit card portfolio and allows Target to buy canada goose jacket cheap cut debt as it expands retail operations, including its first foray into Canada, planned for early next year.
Target credit card business has been growing as the Canada Goose Jackets chain offers 5 percent discounts for users of the so called REDcard and free shipping for online orders.
In the second quarter, uk canada goose outlet the percentage of sales in Target stores paid with Target REDcard credit and debit cards rose to 12.8 percent from 8.7 percent a year earlier.
is a pretty high quality portfolio, said Tom Lewandowski, a St. Louis based banking analyst at Edward https://www.canadagoosejacketsaleca.com Jones.
Canada banks escaped the 2008 financial crisis in canada goose uk shop relatively strong shape and have been canada goose uk black friday seeking foreign owned assets to offset meager growth prospects in their home market.
Under terms Canada Goose Online of the deal, Target, the canada goose store No.
Minneapolis based Target said third quarter earnings will reflect a pretax gain of uk canada goose about $150 million as it changes the accounting treatment of its receivables from for investment to for sale.
It expects to recognize an additional pretax gain of $350 million to $450 canada goose clearance million when the deal closes.
The deal, canada goose jacket sale ca subject to regulatory approval, is expected to be completed during the first half of 2013.
TD shares dropped 1.3 percent at C$81.86, in line with other Toronto listed financials, while Target added 0.7 percent canada goose coats on sale to $62.66 in New York trading. retail canadian goose jacket segment in 2013. The unit earned $355 million in the fiscal third quarter. market eight years ago.
not a ton of things to do with those deposits, and so this is very much in keeping with that kind of a strategy, said CIBC World Markets canada goose clearance sale analyst Robert Sedran.
PROCEEDS TO PAY Canada Goose Parka DOWN DEBT Target Chief Executive Gregg Steinhafel said last week the company expected to find the right buyer for the credit card business by the end of the year.
Target plans to use about 90 percent of the proceeds from the deal to reduce its Canada Goose sale net debt position, and the rest to repurchase its shares over time.
Target said adjusted earnings per share will be about 10 cents lower in the first year after the deal closes than they would Canada Goose Outlet have been if Target kept funding the portfolio due to the combination of the profit sharing arrangement, debt reduction and share repurchases.
Reporting By Cameron French in Toronto and Jessica Wohl in Chicago; Additional reporting by Euan Rocha; canada goose coats Editing by Gerald E. McCormick,; John Wallace, Kenneth Barry and Jeffrey Benkoe.