Nordstrom Declares Special Dividend, Completes Sale of Credit-Card Business
01 Ottobre 2015 - 11:52PM
Dow Jones News
By Josh Beckerman
Nordstrom Inc. shares climbed after hours on Thursday as the
company declared a special dividend and said it completed the sale
of its credit-card business to Toronto-Dominion Bank for $2.2
billion.
The payout for the special dividend of $4.85 a share will total
about $900 million. The retailer also authorized a $1 billion
stock-buyback program.
Nordstrom shares were recently up 4.8% to $74.87 in after-hours
trading.
The clothing retailer had announced the sale of the business in
May. The move allows it to improve its capital efficiency while
retaining a close link with customers. Nordstrom will continue to
do the account-servicing for the portfolio and to fund and manage
its loyalty programs and Nordstrom debit cards.
Toronto-based TD will become the exclusive U.S. issuer of
Nordstrom-branded Visa and private-label consumer credit cards to
Nordstrom customers.
TD Bank Chief Executive Bharat Masrani said in March that TD was
open to buying more assets, possibly in the credit-card market, to
fill out its U.S. balance sheet "because we are rich in deposits
and not as rich in loans."
In February, TD said it was extending its contract with Target
Corp.--a move that ensures TD will remain the exclusive issuer of
Target co-branded and private label credit cards in the U.S. until
March 2025.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 01, 2015 17:37 ET (21:37 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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