Target Corp. (TGT), the second-largest U.S. discount retailer, agreed to sell its $5.9 billion credit card portfolio to TD Bank Group.
The portfolio will be sold for an amount equal to the gross value of the outstanding receivables at the time of closing, Minneapolis-based Target said today in a statement. TD also agreed to a seven-year deal to underwrite, fund and own the retailer’s future credit card and Visa receivables in the U.S., the companies said.
Target suspended the sale of the credit-card portfolio in January after it had been unable to find a buyer for a year.
To contact the reporter on this story: Kevin Orland in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Robin Ajello at email@example.com