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,
XXXXXX XXXXXXX & CO. INCORPORATED
As Representative of the
Underwriters named in
Schedule I hereto
By: /s/ Xxxxxxx Xxxxxx
------------------------------
Accepted:
DISCOVER BANK
By: /s/ Xxxxxxx X. Xxxxxxx
-----------------------
SCHEDULE I
UNDERWRITERS
Subseries 1:
$500,000,000 Floating Rate Class A, Subseries 1 Credit Card Pass-Through
Certificates, Series 2003-1
Principal Amount
----------------
Xxxxxx Xxxxxxx & 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
----------------
Xxxxxx Xxxxxxx & 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
----------------
Xxxxxx Xxxxxxx & 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
----------------
Xxxxxx Xxxxxxx & 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
----------------
Xxxxxx Xxxxxxx & 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
----------------
Xxxxxx Xxxxxxx & 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
============
