The company has granted the underwriters a 30-day option to purchase up to an additional 8.12 million shares to cover over-allotments, if any.

Discover will receive estimated net proceeds from the offering of approximately $480.3 million, or approximately $552.4 million if the underwriters choose to exercise the over-allotment option in full.

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 US Treasury under its capital purchase program (subject to regulatory approval).

JP Morgan Securities is acting as the sole book-running manager for the common stock offering. The offering is expected to close on July 13, 2009.

A service of YellowBrix, Inc.