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Target Corporation (NYSE: TGT) restructures $4.0B credit capacity with new 5-year facility

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Target Corporation entered into a new Five-Year Credit Agreement providing a $4.0 billion unsecured revolving credit facility with a syndicate of banks led by Bank of America as administrative agent. Target may increase lender commitments by up to an additional $1.0 billion, subject to specified conditions. The facility currently expires on August 14, 2031, and can be extended twice for one year each under the agreement’s extension options. Borrowings will bear interest at rates that vary based on the type of loan and Target’s debt ratings, and the agreement includes customary representations, covenants, and a financial covenant on the leverage ratio of Target and its subsidiaries, along with standard events of default that can result in acceleration of obligations.

In connection with this facility, Target terminated its prior $3.0 billion five-year credit agreement dated October 18, 2021, and its $1.0 billion 364-day credit agreement dated October 9, 2025, both of which had terms and conditions substantially similar to the new facility.

Positive

  • None.

Negative

  • None.

Filing Explained

Target has a $4.0 billion credit commitment, while the possible additional $1.0 billion remains conditional and no borrowing is disclosed.

On August 14, 2026, Target entered a new $4.0 billion unsecured revolving credit facility, establishing current contractual borrowing capacity while the filing does not state that funds were drawn.

For existing common holders, the disclosed consequence is a financing arrangement rather than an ownership change: the complete filing discloses no equity issuance or dilution tied to the agreement.

The $4.0 billion is the facility's current commitment, not reported cash proceeds or an amount borrowed. The possible additional $1.0 billion is expansion capacity subject to conditions, not a currently committed amount.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 1.02 Termination of a Material Definitive Agreement Business
A significant contract was terminated, which may affect business operations or revenue.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
New revolving credit facility size $4.0 billion Unsecured revolving credit facility under the new Five-Year Credit Agreement
Incremental facility increase option $1.0 billion Potential additional commitments Target may request under the Credit Agreement
Prior five-year facility terminated $3.0 billion Credit agreement dated October 18, 2021, terminated on August 14, 2026
Prior 364-day facility terminated $1.0 billion 364-Day Credit Agreement dated October 9, 2025, terminated on August 14, 2026
New facility stated expiry August 14, 2031 Scheduled expiration date of the new Five-Year Credit Agreement
Extension options Two one-year options Optional extensions to the new Credit Agreement’s term
Prior five-year scheduled expiry October 18, 2028 Original maturity date of the terminated $3.0 billion facility
Prior 364-day scheduled expiry October 8, 2026 Original maturity date of the terminated $1.0 billion facility
revolving credit facility financial
"for a $4.0 billion unsecured revolving credit facility"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
leverage ratio financial
"including a financial covenant regarding the leverage ratio of Target"
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
events of default financial
"The Credit Agreement also contains customary events of default"
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
off-balance sheet arrangement financial
"or an Obligation under an Off-Balance Sheet Arrangement of a Registrant"
An off-balance sheet arrangement is a financial commitment or asset that a company keeps out of its main financial statements so it does not show up as a direct asset or liability. Think of it like renting equipment or using a separate storage locker instead of putting the item in your home: the economic effects exist, but they aren’t listed on the company’s primary balance sheet. Investors care because these arrangements can hide risks, obligations or sources of cash flow that affect a company’s true financial strength and future performance.
unsecured financial
"for a $4.0 billion unsecured revolving credit facility"
Unsecured describes a loan, bond, or claim that is not backed by specific assets or collateral; if the borrower fails to pay, creditors must rely on the borrower’s general promise rather than seizing a pledged asset. For investors this usually means higher risk and potentially higher yield, because unsecured holders stand behind secured creditors in repayment priority—think of lending money to someone without a pledged item to repossess if they don’t pay.

FAQ

What new credit facility did Target (TGT) enter into on August 14, 2026?
Target entered into a $4.0 billion unsecured revolving credit facility under a new Five-Year Credit Agreement. The facility matures on August 14, 2031 and includes options to extend the term twice for one year each.

Can Target (TGT) increase the size of its new revolving credit facility?
Yes. Under the new Credit Agreement, Target may increase commitments by up to $1.0 billion if certain conditions are satisfied. This expansion feature allows Target to request additional lender commitments over the base $4.0 billion facility amount.

Which prior credit agreements did Target (TGT) terminate in connection with the new facility?
Target terminated its prior $3.0 billion Five-Year Credit Agreement dated October 18, 2021 and its $1.0 billion 364-Day Credit Agreement dated October 9, 2025. Both earlier facilities had terms substantially similar to the new Five-Year Credit Agreement.

How is interest determined under Target’s (TGT) new Five-Year Credit Agreement?
Borrowings under the new Credit Agreement bear interest at rates that vary by loan type and Target’s debt ratings. The specific rate formulas are set out in the Credit Agreement and adjust depending on credit quality and selected borrowing options.

What key financial covenant applies to Target (TGT) under the new Credit Agreement?
The Credit Agreement includes a financial covenant regarding the leverage ratio of Target and its subsidiaries. It also contains customary affirmative and negative covenants and standard events of default, which can lead to accelerated obligations if not cured or waived.

When were Target’s (TGT) prior credit facilities scheduled to expire before termination?
The prior $3.0 billion Five-Year Credit Agreement was scheduled to expire on October 18, 2028, and the $1.0 billion 364-Day Credit Agreement was scheduled to expire on October 8, 2026, before being terminated on August 14, 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 14, 2026

Target Corporation
(Exact name of registrant as specified in its charter)
Minnesota1-604941-0215170
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)

1000 Nicollet Mall,Minneapolis,Minnesota

55403
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (612) 304-6073

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.0833 per shareTGTNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 1.01             Entry into a Material Definitive Agreement.
 
On August 14, 2026, Target Corporation (“Target”) entered into a Five-Year Credit Agreement with certain lenders, Bank of America, N.A., as administrative agent, Citibank, N.A., and Wells Fargo Bank, National Association, as co-syndication agents, and JPMorgan Chase Bank, N.A., and U.S. Bank National Association, as co-documentation agents, for a $4.0 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 on August 14, 2031, which may be extended pursuant to two extension options of one year each 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 customary representations and warranties and affirmative and negative covenants, including a financial covenant regarding the leverage ratio of Target and its subsidiaries. The Credit Agreement also contains customary 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.

The foregoing description of the Credit Agreement is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which is filed herewith as an exhibit.

Item 1.02             Termination of a Material Definitive Agreement.

In connection with entering into the Credit Agreement described above, on August 14, 2026, Target terminated its prior $3.0 billion Five-Year Credit Agreement, dated as of October 18, 2021, with certain lenders, Bank of America, N.A. as administrative agent, and the co-documentation agents and syndication agent listed therein, as previously amended on October 25, 2022 and September 20, 2023 (as amended, the “Prior Five-Year Credit Agreement”). The Prior Five-Year Credit Agreement was scheduled to expire on October 18, 2028. The other material terms and conditions of the Prior Five-Year Credit Agreement were substantially similar to the material terms and conditions of the Credit Agreement described above under Item 1.01.

Also in connection with entering into the Credit Agreement described above, on August 14, 2026, Target terminated its $1.0 billion 364-Day Credit Agreement, dated as of October 9, 2025, with certain lenders, Bank of America, N.A., as administrative agent, and the co-documentation agents and syndication agent listed therein (the “364-Day Credit Agreement”). The 364-Day Credit Agreement was scheduled to expire on October 8, 2026 and did not have an option to extend the term. The other material terms and conditions of the 364-Day 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 is incorporated herein by reference.

Item 9.01             Financial Statements and Exhibits.
 
(d)                                 Exhibits.
10.28
Five-Year Credit Agreement, dated as of August 14, 2026, among Target Corporation, Bank of America, N.A., as Administrative Agent, Co-Syndication Agents and the Co-Documentation Agents listed therein, and the Banks listed therein.
104Cover Page Interactive Data File (formatted as inline XBRL).


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: August 14, 2026By:/s/ Grant B. McGee
Name: Grant B. McGee
Title: Executive Vice President and Chief Legal and Compliance Officer


Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

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Agreements & Contracts

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