New Issue: Discover Financial Services sells $1 billion 4.1% 10-year notes at 170 bps spread

By Cristal Cody

Tupelo, Miss., Feb. 6 – Discover Financial Services sold $1 billion of 4.1% 10-year split-rated senior notes (Ba1/BBB-/BBB+) on Monday at a spread of 170 basis points over Treasuries, on the tight side of guidance, according a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.911 to yield 4.111%.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and BofA Merrill Lynch were the bookrunners.

Proceeds will be used for general corporate purposes.

Discover is a Riverwoods, Ill.-based direct banking and payment services company.

Issuer:	Discover Financial Services
Amount:	$1 billion
Description:	Senior notes
Maturity:	Feb. 9, 2027
Bookrunners:	Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch
Senior co-managers:	MUFG, RBC Capital Markets, LLC
Junior co-manager:	Williams Capital Group, LP
Coupon:	4.1%
Price:	99.911
Yield:	4.111%
Spread:	Treasuries plus 170 bps
Call feature:	On or after Nov. 9, 2026 at par
Trade date:	Feb. 6
Settlement date:	Feb. 9
Ratings:	Moody’s: Ba1
	S&P: BBB-
	Fitch: BBB+
Distribution:	SEC registered
Price guidance:	Treasuries plus 175 bps area, plus or minus 5 bps

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