Discover Bank to add $500 million in debt

Discover Bank, a unit of Riverwoods-based Discover Financial Services, may sell $500 million of 10-year notes, according to a person familiar with the offering.

The debt, which may pay 325 basis points more than similar- maturity Treasuries, may be sold as soon as today, said the person, who declined to be identified because terms aren't set.

The notes are expected to be rated Ba1 by Moody's Investors Service and BBB- by Standard & Poor's, the person said.

Proceeds will be used to increase capital levels and for general corporate purposes, the person said.