RIVERWOODS, Ill., Apr 12, 2010 (BUSINESS WIRE) --Discover Financial Services (NYSE:DFS) today announced the pricing of an
offering of $500 million of 7.00% Discover Bank subordinated notes due
April 2020. The offering is expected to close on April 15, 2010.
Discover Bank will receive estimated net proceeds from the offering of
approximately $492 million, which will be used to increase Discover
Bank's Tier 2 capital and for general corporate purposes. Barclays
Capital Inc., Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are
acting as joint book-running managers for the subordinated debt offering.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be any
sale of these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company
operates the Discover
card, America's cash rewards pioneer, and offers personal and
student loans, online savings accounts, certificates of deposit and
money market accounts through its Discover
Bank subsidiary. Its payment businesses consist of Discover Network,
with millions of merchant and cash access locations; PULSE, one of the
nation's leading ATM/debit networks; and Diners Club International, a
global payments network with acceptance in more than 185 countries and
territories.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Discover Financial Services' management and are subject to significant
risks and uncertainties. Actual results may differ materially from those
set forth in the forward-looking statements. These forward-looking
statements speak only as of the date of this press release, and there is
no undertaking to update or revise them as more information becomes
available. The following factors, among others, could cause actual
results to differ materially from those set forth in the forward-looking
statements: the actions and initiatives of current and potential
competitors; our ability to manage credit risks and securitize our
receivables at acceptable rates and under sale accounting treatment;
changes in economic variables, such as the availability of consumer
credit, the housing market, energy costs, the number and size of
personal bankruptcy filings, the rate of unemployment and the levels of
consumer confidence and consumer debt, and investor sentiment; the
impact of current, pending and future legislation, regulation and legal
actions, including new laws and rules limiting or modifying certain
credit card practices, new laws and rule affecting securitizations, new
laws and rules related to government programs to stabilize the financial
markets, and regulations and supervisory guidance related to becoming a
bank holding company; restrictions on the company's operations resulting
from financing transactions including participation in the U.S.
Treasury's Capital Purchase Program; the actions and initiatives of
current and potential competitors; the company's ability to successfully
achieve card acceptance across its networks and maintain relationships
with network participants; the company's ability to manage its credit
risk, market risk, liquidity risk, operational risk, legal and
compliance risk, and strategic risk; the availability and cost of
funding and capital; access to deposit, securitization, equity, debt and
credit markets; the impact of rating agency actions; the level and
volatility of equity prices, commodity prices and interest rates,
currency values, investments, other market fluctuations and other market
indices; losses in the company's investment portfolio; the company's
ability to increase or sustain Discover card usage or attract new
customers; the company's ability to attract new merchants and maintain
relationships with current merchants; the effect of political, economic
and market conditions, geopolitical events and unforeseen or
catastrophic events; fraudulent activities or material security breaches
of key systems; the company's ability to introduce new products or
services; the company's ability to sustain its investment in new
technology and manage its relationships with third-party vendors; the
company's ability to collect amounts for disputed transactions from
merchants and merchant acquirers; the company's ability to attract and
retain employees; the company's ability to protect its reputation and
its intellectual property; difficulty financing or integrating new
businesses, products or technologies; and new lawsuits, investigations
or similar matters or unanticipated developments related to current
matters.
Additional factors that could cause Discover Financial Services' results
to differ materially from those described in the forward looking
statements can be found in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the company's
quarterly report on Form 10-Q for the quarter ended February 28, 2010
and in "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the company's annual
report on Form 10-K for the year ended November 30, 2009, which are
filed with the SEC and available at the SEC's internet site (http://www.sec.gov).
SOURCE: Discover Financial Services
Discover Financial Services
Investors:
Craig Streem, 224-405-3575
craigstreem@discover.com
or
Media:
Jon Drummond, 224-405-1888
jondrummond@discover.com