Discover plans to issue $500 million of securities backed by credit card receivables from its credit card trust, according to a Fitch Ratings presale report.

Deutsche Bank and RBC Capital Markets are the lead underwriters on the deal.

The Discover Series Class A (2014-5) notes have been assigned a preliminary ‘AAA’ rating by Fitch Ratings. The notes are due April 15, 2020 and have credit enhancement of 24.5%

Discover priced its last series of senior bonds in July. That deal, series 2014-4, sold $1.2 billion of 5-year, ‘AAA’ notes at a spread of 36 basis points over interpolated swaps. 

With this latest transaction, 29 series of class A notes will be outstanding under Discover’s credit card trust, according to Fitch. The total invested amount of notes outstanding will be $20.78 billion, consisting of $15.0 billion of class A notes, $1.43 billion of class B notes, $1.87 billion of class C notes and $2.49 billion of class D notes.

The credit card lender increased the available credit enhancement 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.

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