Discover Financial buys back warrants from Treasury Department, completing exit from TARP

Discover Financial buys back warrants from Treasury Department, completing exit from TARP

Discover Financial Services announced that it has bought back its warrants from the Treasury Department for $172 million, completing its exit from the Troubled Asset Relief Program and avoiding an auction of the securities.

Discover got $1.2 billion in aid from the federal government in March 2009 as part of TARP’s Capital Purchase Program. It repaid the funds in April of this year.

In the notes of a new SEC filing, the company said that it completed its dealings with the Treasury on Wednesday, buying back 20,500,413 warrants to buy shares of common stock. The warrants were exercisable at $8.96 per share.

Treasury obtained the warrants as a condition of the company’s participation in TARP. Discover’s stock was trading at $14.61 per share Thursday morning.

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