Discover Financial Services (NYSE:DFS) today announced it has commenced an underwritten public offering of $500 million of its common stock.
The net proceeds from the offering will be used for general corporate purposes, which may include capital contributions to the company's subsidiary, Discover Bank, possible investments in the company's businesses, or possible repurchase of fixed rate cumulative perpetual preferred stock issued by Discover to the U.S. Treasury under its Capital Purchase Program (subject to regulatory approval). The company will grant the underwriters a 30-day option to purchase up to an additional 15 percent of the number of shares offered to cover over-allotments, if any. In addition, the company intends to offer senior notes in the near future, subject to market conditions.
J.P. Morgan Securities Inc. is acting as sole book-running manager for both the common stock and proposed senior notes offerings. A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting J.P. Morgan Securities Inc., Attn: Prospectus Department, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245 or by calling 1-718-242-8002.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.