By Andrea Heisinger
New York, Nov. 10 - Discover Bank sold $700 million of 8.7% split-rated 10-year subordinated bank notes on Tuesday to yield Treasuries plus 525 basis points, a market source said.
The sale went overnight from Monday.
The notes (Ba1/BBB-/BBB-) priced at 99.742 to yield 8.739%. They are non-callable.
Goldman Sachs & Co. ran the books.
Proceeds will be used for general corporate purposes.
The banking subsidiary of Discover Financial Services is based in Riverwoods, Ill.
| Issuer: | Discover Bank
|
| Issue: | Subordinated bank notes
|
| Amount: | $700 million
|
| Maturity: | Nov. 18, 2019
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 8.7%
|
| Price: | 99.742
|
| Yield: | 8.739%
|
| Spread: | Treasuries plus 525 bps
|
| Call: | Non-callable
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
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