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Highlights of the deal

Last update: May 5, 2008 - 9:04 PM

 

Target Corp., announced Monday it will sell a portion of its credit card receivables to J.P. Morgan Chase.

Price tag: $3.6 billion, for 47 percent of Target's outstanding receivables

Closing date: Before the end of May

FINE PRINT

• Target maintains control of its credit card operations, including customer service.

• Target and J.P. Morgan Chase share expected profits, with Chase's interest capped at 3.4 percent of the principal.

• Target agrees to a 7 percent purchase discount, citing a seasonal low in the receivables. Chase has option to increase its investment to $3.9 billion.

Source: Target Corp.

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