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April 14, 2008
Sidley Austin LLP Advises Discover Financial Services on Sale of its UK Credit Card Business

London - Sidley Austin LLP has advised Discover Financial Services on the sale of its UK credit card business to Barclays Bank PLC. The sale, which is valued at £35m and was completed on 31 March 08, consisted of approximately 1.7 million credit card accounts with approximately £2bn of gross receivables, the Goldfish brand, its operating facilities and staff and certain legal entities. The deal also included the transfer of rights and obligations under existing securitisation and conduit financing arrangements.

London partners John Casanova (Regulatory), Jonathan Wallace (Corporate) and Drew Scott (Tax) led the Sidley team representing Discover.

"The deal featured a number of challenging issues relating to tax, pricing and securitisation structuring. Given current market conditions, we expect to see a number of similar deals and portfolio transfers as further consolidation occurs in the credit card sector," said Jonathan Wallace.

Sidley has previously advised Discover Financial Services in connection with the acquisition of the Goldfish credit card business and the spin-off of Discover Financial Services from Morgan Stanley, and continues to represent the company.

Barclays Bank PLC was advised by Freshfields Bruckhaus Deringer.

Sidley Austin LLP is one of the world's largest full-service law firms, with more than 1800 lawyers practising in 16 U.S. and international cities, including Beijing, Brussels, Frankfurt, Geneva, Hong Kong, London, Shanghai, Singapore, Sydney and Tokyo. Every year since 2003, Sidley has been named to Legal Business' Global Elite, their designation for "the 15 finest law firms in the world." BTI, a Boston-based consulting and research firm, has named Sidley to their Client Service Hall of Fame as one of only two law firms to rank in the Client Service Top 10 for seven years in a row.

For more information:

, Director of Practice Development, 212.839.8797
, Rubenstein Associates, 212.843.8007

 

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