Discover Financial Services (DFS) Monday said it commenced an underwritten public offering of $500 million of its common stock. The net proceeds from the offering would 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. The company would grant the underwriters a 30-day option to purchase up to an additional 15% of the number of shares offered to cover over-allotments, if any. In addition, the company said it plans to offer senior notes in the near future.
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