EX-1.1 3 c74160exv1w1.txt TERMS AGREEMENT EXHIBIT 1.1 DISCOVER CARD MASTER TRUST I CREDIT CARD PASS-THROUGH CERTIFICATES TERMS AGREEMENT Dated: January 10, 2003 To: Discover Bank, as Seller under the Pooling and Servicing Agreement, as amended, dated as of October 1, 1993. Re: Underwriting Agreement dated January 15, 2002 Title of Securities: Subseries 1: Discover Card Master Trust I, Series 2003-1 Floating Rate Class A, Subseries 1 Credit Card Pass-Through Certificates. Discover Card Master Trust I, Series 2003-1 Floating Rate Class B, Subseries 1 Credit Card Pass-Through Certificates. Subseries 2: Discover Card Master Trust I, Series 2003-1 Floating Rate Class A, Subseries 2 Credit Card Pass-Through Certificates. Discover Card Master Trust I, Series 2003-1 3.45% Class B, Subseries 2 Credit Card Pass-Through Certificates. Subseries 3: Discover Card Master Trust I, Series 2003-1 Floating Rate Class A, Subseries 3 Credit Card Pass-Through Certificates. Discover Card Master Trust I, Series 2003-1 Floating Rate Class B, Subseries 3 Credit Card Pass-Through Certificates. Initial Principal Amount of Certificates: $1,578,948,000 Series and Class Designation Schedule: Subseries 1: Discover Card Master Trust I, Series 2003-1 $500,000,000 Floating Rate Class A, Subseries 1 Credit Card Pass-Through Certificates. Discover Card Master Trust I, Series 2003-1 $26,316,000 Floating Rate Class B, Subseries 1 Credit Card Pass-Through Certificates. Subseries 2: Discover Card Master Trust I, Series 2003-1 $500,000,000 Floating Rate Class A, Subseries 2 Credit Card Pass-Through Certificates. Discover Card Master Trust I, Series 2003-1 $26,316,000 3.45% Class B, Subseries 2 Credit Card Pass-Through Certificates. Subseries 3: Discover Card Master Trust I, Series 2003-1 $500,000,000 Floating Rate Class A, Subseries 3 Credit Card Pass-Through Certificates. Discover Card Master Trust I, Series 2003-1 $26,316,000 Floating Rate Class B, Subseries 3 Credit Card Pass-Through Certificates. Series Cut-Off Date: January 1, 2003
Moody's Investors Standard & Poor's Certificate Rating: Service, Inc. Ratings Services ------------------- ----------------- ----------------- Class A, Subseries 1 Aaa AAA Class B, Subseries 1 A2 A Class A, Subseries 2 Aaa AAA Class B, Subseries 2 A2 A Class A, Subseries 3 Aaa AAA Class B, Subseries 3 A2 A
Aggregate outstanding balance of Receivables as of January 1, 2003: $35,871,381,619.62 Date of Series Supplement: January 22, 2003 Certificate Rate: Class A, Subseries 1: One-month LIBOR plus 0.06% per annum; Class B, Subseries 1: One-month LIBOR plus 0.36% per annum; Class A, Subseries 2: One-month LIBOR plus 0.10% per annum; Class B, Subseries 2: 3.45% per annum; Class A, Subseries 3: One-month LIBOR plus 0.14% per annum; and Class B, Subseries 3: One-month LIBOR plus 0.48% per annum. Terms of Sale: The purchase price for the Certificates to the Underwriters as of January 22, 2003 will be: 99.800% of the aggregate principal amount of the Class A, Subseries 1 Certificates; 99.750% of the aggregate principal amount of the Class B, Subseries 1 Certificates; 99.790% of the aggregate principal amount of the Class A, Subseries 2 Certificates; 99.57957% of the aggregate principal amount of the Class B, Subseries 2 Certificates; 99.775% of the aggregate principal amount of the Class A, Subseries 3 Certificates; and 99.750% of the aggregate principal amount of the Class B, Subseries 3 Certificates. The Underwriters will offer the Certificates to the public at a price equal to: 100% of the aggregate principal amount of the Class A, Subseries 1 Certificates; 100% of the aggregate principal amount of the Class B, Subseries 1 Certificates; 100% of the aggregate principal amount of the Class A, Subseries 2 Certificates; 99.82957% of the aggregate principal amount of the Class B, Subseries 2 Certificates; 100% of the aggregate principal amount of the Class A, Subseries 3 Certificates; and 100% of the aggregate principal amount of the Class B, Subseries 3 Certificates. Time of Delivery: 9:00 A.M., Chicago, Illinois Time, on January 22, 2003, or at such other time as may be agreed upon in writing. Notwithstanding anything in the Agreement or in this Terms Agreement to the contrary, the Agreement and this Terms Agreement constitute the entire agreement and understanding among the parties hereto with respect to the purchase and sale of the Series 2003-1 Certificates. This Terms Agreement may be amended only by written agreement of the parties hereto. Very truly yours, MORGAN STANLEY & CO. INCORPORATED As Representative of the Underwriters named in Schedule I hereto By: /s/ Sanjeev Khanna ------------------------------ Accepted: DISCOVER BANK By: /s/ Michael F. Rickert ----------------------- SCHEDULE I UNDERWRITERS Subseries 1: $500,000,000 Floating Rate Class A, Subseries 1 Credit Card Pass-Through Certificates, Series 2003-1
Principal Amount ---------------- Morgan Stanley & Co. Incorporated $375,000,000 $295,835,000 Deutsche Bank Securities Inc. $ 40,000,000 RBC Dominion Securities Corporation $ 35,000,000 ABN AMRO Incorporated $ 12,500,000 Commerzbank Capital Markets Corp. $ 12,500,000 Danske Securities (US), Inc. $ 12,500,000 HSBC Securities (USA) Inc. $ 12,500,000 Total $500,000,000 ============
$26,316,000 Floating Rate Class B, Subseries 1 Credit Card Pass-Through Certificates, Series 2003-1
Principal Amount ---------------- Morgan Stanley & Co. Incorporated $19,737,000 Deutsche Bank Securities Inc. $ 2,105,280 RBC Dominion Securities Corporation $ 1,842,120 ABN AMRO Incorporated $ 657,900 Commerzbank Capital Markets Corp. $ 657,900 Danske Securities (US), Inc. $ 657,900 HSBC Securities (USA) Inc. $ 657,900 Total $26,316,000 ===========
Subseries 2: $500,000,000 Floating Rate Class A, Subseries 2 Credit Card Pass-Through Certificates, Series 2003-1
Principal Amount ---------------- Morgan Stanley & Co. Incorporated $375,000,000 Deutsche Bank Securities Inc. $ 40,000,000 RBC Dominion Securities Corporation $ 35,000,000 ABN AMRO Incorporated $ 12,500,000 Commerzbank Capital Markets Corp. $ 12,500,000 Danske Securities (US), Inc. $ 12,500,000 HSBC Securities (USA) Inc. $ 12,500,000 Total $500,000,000 ============
$26,316,000 3.45% Class B, Subseries 2 Credit Card Pass-Through Certificates, Series 2003-1
Principal Amount ---------------- Morgan Stanley & Co. Incorporated $19,737,000 Deutsche Bank Securities Inc. $ 2,105,280 RBC Dominion Securities Corporation $ 1,842,120 ABN AMRO Incorporated $ 657,900 Commerzbank Capital Markets Corp. $ 657,900 Danske Securities (US), Inc. $ 657,900 HSBC Securities (USA) Inc. $ 657,900 Total $26,316,000 ===========
Subseries 3: $500,000,000 Floating Rate Class A, Subseries 3 Credit Card Pass-Through Certificates, Series 2003-1
Principal Amount ---------------- Morgan Stanley & Co. Incorporated $375,000,000 Deutsche Bank Securities Inc. $ 40,000,000 RBC Dominion Securities Corporation $ 35,000,000 ABN AMRO Incorporated $ 12,500,000 Commerzbank Capital Markets Corp. $ 12,500,000 Danske Securities (US), Inc. $ 12,500,000 HSBC Securities (USA) Inc. $ 12,500,000 Total $500,000,000 ============
$26,316,000 Floating Rate Class B, Subseries 3 Credit Card Pass-Through Certificates, Series 2003-1
Principal Amount ---------------- Morgan Stanley & Co. Incorporated $ 19,737,000 Deutsche Bank Securities Inc. $ 2,105,280 RBC Dominion Securities Corporation $ 1,842,120 ABN AMRO Incorporated $ 657,900 Commerzbank Capital Markets Corp. $ 657,900 Danske Securities (US), Inc. $ 657,900 HSBC Securities (USA) Inc. $ 657,900 Total $ 26,316,000 ============