Filed Pursuant to Rule 433
Registration No. 333-182440
TERM SHEET
Dated March 2, 2015
$500,000,000
3.750% Senior Notes due 2025
This term sheet relates only to the securities described below and supplements and should be read together with the preliminary prospectus supplement, dated March 2, 2015 and the accompanying prospectus (including the documents incorporated by reference in the accompanying prospectus) relating to these securities.
| Issuer: | Discover Financial Services | |
| Security: | 3.750% Senior Notes due 2025 | |
| Ratings (Moody’s / S&P / Fitch):* | Ba1 (stable)/BBB- (positive)/BBB+ (stable) | |
| Currency: | USD | |
| Size: | $500,000,000 | |
| Maturity: | March 4, 2025 | |
| Coupon: | 3.750% | |
| Payment Frequency: | Semi-Annually | |
| Day Count Convention: | 30/360 | |
| Benchmark Treasury: | 2.000% UST due February 15, 2025 | |
| Benchmark Treasury Price and Yield: | 99-13+; 2.064% | |
| Spread to Benchmark Treasury: | T +170 bps | |
| Yield to Maturity: | 3.764% | |
| Price to Public: | 99.884% of face amount | |
| Interest Payment Dates: | March 4 and September 4 of each year, commencing September 4, 2015 | |
| Trade Date: | March 2, 2015 | |
| Settlement Date: | March 4, 2015 (T+2) | |
| Denominations: | $2,000 x $1,000 | |
| CUSIP/ISIN: | 254709AL2/US254709AL28 | |
| Optional Redemption: | Redeemable by the issuer at any time on or after December 4, 2024 (three months prior to the maturity date) at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest, as described in the preliminary prospectus supplement. | |
| Joint Book-Running Managers: | Barclays Capital Inc. Credit Suisse Securities (USA) LLC Deutsche Bank Securities Inc. | |
| Co-Managers: | Goldman, Sachs & Co. Morgan Stanley & Co. LLC | |
| Junior Co-Manager: | The Williams Capital Group, L.P. | |
*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
Discover Financial Services has filed a registration statement (including a prospectus dated as of June 29, 2012) and a preliminary prospectus supplement dated as of March 2, 2015 with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents Discover Financial Services has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, copies of the prospectus and the preliminary prospectus supplement may be obtained from (i) Barclays Capital Inc. by calling toll-free at 888-603-5847 or by emailing Barclaysprospectus@broadridge.com; (ii) Credit Suisse Securities (USA) LLC. by calling toll-free at 1-800-221-1037; and (iii) Deutsche Bank Securities Inc. by calling toll-free at 1-800-503-4611 or by emailing prospectus.cpdg@db.com.