Nordstrom has closed on its credit card transaction with TD Bank U.S.A. The Company sold its credit card portfolio to TD for $2.2 billion span, representing the gross value of the outstanding receivables.
The deal also includes initiation of the long-term agreement under which TD is the exclusive U.S. issuer of Nordstrom-branded Visa and private label consumer credit cards. Nordstrom will continue to perform all customer-facing account servicing functions, maintaining the customer-focused integration between its credit and retail operations. The Company will also continue to fund and manage the Nordstrom Rewards loyalty program, Nordstrom debit cards and Nordstrom employee accounts.
In conjunction with the transaction, the Company prepaid $325 million of secured debt due October 2016 to provide the receivables free and clear.
Nordstrom says it is pleased to be able to return capital directly to our shareholders using our balanced approach to capital allocation.
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