Discover to sell $400 million in debt

Discover Financial Services, the credit-card company that took $1.2 billion from the Treasury's bank rescue fund, plans to issue $400 million of 10-year senior notes, according to a person familiar with the transaction.

The debt may price to yield 10.25 percent, said the person, who declined to be identified because terms aren't set. The bonds may be rated Ba1 by Moody's Investors Service and BBB- by Standard & Poor's, the person said.

JPMorgan Chase & Co. is underwriting the sale, Discover said yesterday in a filing with the U.S. Securities and Exchange Commission. Proceeds will be used for general corporate purposes, Discover said in the filing.

The filing didn't specify the size or timing of the sale.