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Target sells $2 billion of bonds in two-part offering

(Reuters) - U.S. retailer Target Corp 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 percentage point more than comparable U.S. Treasuries. Target priced its 10-year bonds to yield 3.553 percent, which is about 0.9 percentage points more than the standard rate.

Target said it 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.

Target was the victim of a cyber attack in December that resulted in the theft of at least 40 million payment card numbers and 70 million other pieces of customer data.

Since then, the company has announced plans to overhaul its information security practices and bolster its technology management team.

In May Target reported a 16 percent drop in first-quarter profit and lowered its adjusted full-year profit forecast to $3.60-$3.90 per share from $3.85-$4.15 to account for increased discounting and investments in e-commerce.

The company’s share price has fallen 16.73 percent in the last 12 months to close at $58.17 on the New York Stock Exchange on Tuesday.

(Reporting by Ankit Ajmera and Tanvi Mehta in Bangalore; Editing by Lisa Shumaker)

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