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Takeaway: $TGT's credit card sale is finally done. But at a price well below what we think is acceptable at this point in the cycle.

So, Target is finally selling its credit business in a transaction with TD for $5.9bn. All in, it looks like a bad deal for Target. Par value is the low end of the range for what we should be seeing in deals like this, especially at this point in the cycle. A good deal would have been a mid-to-high single digit premium to receivables.

Mind you, it's not like this is a poor quality portfolio. TGT's REDcard, which offers 5%discounts and gives cardholders free shipping for online orders accounted for 12.8% of sales in the latest quarter vs 8.7% a year ago. Perhaps the quality of that growth is less than what the Street otherwise thought.

In the end, the cash in in, and the distraction is gone. But the price is low.