Target Sells Stake in Credit-Card Receivables

Minneapolis Target said it is selling an interest in its credit-card receivables business to JPMorgan Chase for about $3.6 billion. The retailer said the interest represents about 47% of the principal amount of Target's outstanding receivables.

The deal is expected to close before the end of the month.

Target said the deal will provide it "significant liquidity" without the need to access term debt capital markets again this year and will not affect Target customers.

Target began to review options for its receivables business in September.