Discover Financial (DFS) Commences $500M Offering of Common Stock
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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.
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.
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