U.S. retailer Target increased yields on Tuesday to sell $2 billion of bonds in a two-part offering and plans to use part of the proceeds to buy back as much as $1 billion of debt.
The company priced its five-year bonds to yield 2.348 percent on maturity, which is about 0.6 percent more than comparable U.S. Treasuries. Target priced its 10-year bonds to yield 3.553 percent, which is about 0.9 percent more than the standard rate.
Target planned to use proceeds from the sale of bonds to buy back as much as $1 billion of existing debt from among $3.76 billion of certain notes and debentures maturing between 2028 and 2038.
In May, Target reported a 16 percent drop in first-quarter profit and lowered its adjusted full-year profit to $3.60-$3.90 per share from $3.85-$4.15 to account for increased discounting and investments in e-commerce.