Discover Bank plans to issue $500 million of 'AAA' rated securities backed by monthly payments received on its credit cards, according to Fitch Ratings.

The 2015-3 bonds, structured with a weighted average life of three years, will be issued from Discover's Card Execution Note Trust.  The bonds benefit from 24.50% credit support.

Discover's credit card trust is known as a multiple-issuance series; it allows for the sale of a single-note series or a multiple-note series. A multiple-issuance series consists of class A, B, C, and D notes, with subclasses that may be offered independently and have differing terms, issuance dates, and maturities.

Upon issuance of this transaction, 28 series of class A notes will be outstanding under Discover's credit card trust. The total invested amount of notes outstanding will be $20.78 billion, consisting of $14.90 billion of class A notes, $1.47 billion of class B notes, $1.92 billion of class C notes, and $2.49 billion of class D notes.

Deutsche Bank and RBC Capital markets are the lead managers.

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