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.
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 78th tranche issued and 41st 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.