Discover Bank, a unit of Discover Financial Services, issued and sold $750 million of notes due Sept. 12, 2024.
The notes will bear interest at the rate of 2.450% per annum from Sept. 12, until the principal of the notes has been paid in full or a sum sufficient to pay the principal of the notes has been made available for payment. Interest will be calculated on the basis of a 360-day year of 12 30-day months.
Interest on the notes will be paid semiannually in arrears on March 12 and Sept. 12 of each year, beginning March 12, 2020, and on the date of maturity or redemption. Payments will include interest accrued to, but excluding, the relevant interest payment date.
The securities were issued pursuant to a fiscal and paying agency agreement between the bank, as issuer of the notes, and US Bank NA, as fiscal and paying agent. The notes are direct, unconditional and unsecured general obligations of the bank and are neither obligations of, nor guaranteed by, Discover Financial Services or any of the bank's other affiliates.
At its option, Discover Bank may redeem the notes at any time on or after Aug. 12, 2024, in whole or in part on no less than 10 nor more than 60 days' prior notice delivered to the holders.
