Discover Bank is readying its fourth credit card receivable-backed securitization of the year, according to a filing with the SEC.

The $500 million Class A (2014-4) transaction is expected to be the 78th tranche of notes—the 41st tranche of Discover Series Class A notes—to be issued under the Discover Card Execution Note Trust.

They will be backed by a collateral certificate from the outstanding Series 2007-CC notes under the Discover Card Master Trust I. The collateral certificate represents an interest in the aggregate pool of receivables in the master trust. 

As of June 30, 2014, the receivables in the master trust totaled $29.7 billion.

The notes are expected to mature in June 2019, reaching legal maturity in December 2021. 

The lead underwriters are Deutsche Bank Securities and RBC Capital Markets.

Of the 78 tranches issued under the Discover Card Execution Note Trust, 37 have not yet reached their expected maturity dates and remain outstanding.

Discover’s last transaction under its Discover Card Execution Note Trust was in early May, when the $1.0 billion Class A (2014-3) notes were issued.  Moody’s Investors Service rated the notes ‘AAA,’ with credit enhancement totaling 24.5%. The underlying assets consist of the Series 2007-CC collateral certificate issued under the Discover Card Master Trust I, representing an undivided credit interest in the master trust’s credit card receivables.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.