Discover Prices Upsized $1.2B of Credit Card ABS

July 30, 2014, 10:09 a.m. EDT 1 Min Read

Discover Bank priced an upsized $1.2 billion credit card-receivable securitization, according to a filing with the SEC—more than double the $500 million originally on offer.

The DiscoverSeries Class A (2014-4) notes, issued under the Discover Credit Execution Note Trust, are priced at a spread of 36 basis points over interpolated swaps. The notes have a 4.87-year weighted average life, and reaches its final legal maturity in December 2021.

The deal is 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.

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The issuance of the Class A (2014-4) notes marks Discover’s fourth transaction of the year under the Discover Credit Execution Note Trust—the 78^th tranche issued and 41^st tranche of DiscoverSeries Class A notes.

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

Discover’s last transaction under the Discover Card Execution Note Trust also upsized significantly—to $1.0 billion—at pricing. The Discover Series Class A (2014-3) notes, issued April 28, 2014, originally totaled $750 million. The notes have a shorter, 2.95 year weighted average life, and reach legal final maturity in October 2019. The notes priced at a spread of 25 basis points over interpolated swaps. Fitch Ratings assigned AAA’ ratings to the notes.

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