Discover Bank is preparing to offer $750 million of notes backed by credit card receivables, according to a Fitch Ratings presale report.

Fitch has assigned the Class A notes, to be issued by the Discover Card Execution Note Trust, ‘AAA’ ratings. They have an average life to maturity of three years. Credit enhancement for the notes totals 24.50%.  

According to Interactive Data the notes are being talked at swaps plus 25 basis point area. Barclays and Credit Suisse are the lead underwriters.

This is Discover’s third offering of Class A notes this year; in April the bank priced $850 million of three-year credit card-backed securities at 20 basis points over three-month Libor.

The class A(2014-2) tranche is expected to be 28th series of class A notes outstanding under the trust, according to Fitch's presale report. The sponsor increased the available credit enhancement (CE) for this trust by issuing a single tranche of class D notes on July 2, 2009, which was subsequently upsized on Jan. 13, 2010 and again on Dec. 16, 2011.

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.