$4.0 billion is the contracted capacity of the unsecured revolving credit facility Target Corporation (NYSE: TGT) established on August 14, 2026, precisely matching the combined capacity of the two facilities it retired the same day. The new Five-Year Credit Agreement runs to August 14, 2031, with Bank of America, N.A. serving as administrative agent and two one-year extension options built into the terms.
What replaced what
The filing retired two instruments at once. Target's $3.0 billion Five-Year Credit Agreement, originally dated October 18, 2021 and amended twice (October 25, 2022 and September 20, 2023), had been scheduled to run to October 18, 2028. The second termination covered a $1.0 billion 364-Day Credit Agreement dated October 9, 2025, set to expire October 8, 2026. Together, $4.0 billion. The new revolver consolidates that into one line.
| Facility | Capacity | Original expiry | Status |
|---|---|---|---|
| New Five-Year revolver | $4.0B (+ up to $1.0B accordion) | Aug. 14, 2031 | Active (reported) |
| Prior Five-Year revolver | $3.0B | Oct. 18, 2028 | Terminated |
| Prior 364-Day revolver | $1.0B | Oct. 8, 2026 | Terminated |
The accordion provision allows Target to increase total commitments by up to $1.0 billion, subject to conditions, putting the potential ceiling at $5.0 billion.
Structure and pricing
Borrowing costs under the Credit Agreement vary by loan type and Target's debt ratings at the time of any draw. The agreement carries a leverage ratio financial covenant covering Target and its subsidiaries, along with standard representations, warranties, and affirmative and negative covenants. Events of default not cured within applicable cure periods can trigger acceleration of obligations.
Citibank, N.A. and Wells Fargo Bank, National Association serve as co-syndication agents. JPMorgan Chase Bank, N.A. and U.S. Bank National Association are co-documentation agents. Grant B. McGee, Target's Executive Vice President and Chief Legal and Compliance Officer, signed the filing.
At the time of the August 14 filing, the 364-day facility had 55 days remaining before its scheduled October 8, 2026 expiration. Target terminated it early, rolling that $1.0 billion alongside the $3.0 billion five-year balance into the new instrument, which can run to 2033 if both extension options are exercised.