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SUBJECT TO REVISION
SERIES TERM SHEET DATED JUNE 8, 2000
DISCOVER(R) CARD MASTER TRUST I, SERIES 2000-7
$850,000,000 FLOATING RATE CLASS A CERTIFICATES
$44,737,000 FLOATING RATE CLASS B CERTIFICATES
GREENWOOD TRUST COMPANY
MASTER SERVICER, SERVICER AND SELLER
THE CERTIFICATES REPRESENT INTERESTS IN THE DISCOVER CARD MASTER TRUST
I. THE CERTIFICATES ARE NOT OBLIGATIONS OF GREENWOOD TRUST COMPANY OR ANY OF ITS
AFFILIATES, AND NEITHER THE CERTIFICATES NOR THE UNDERLYING CREDIT CARD
RECEIVABLES ARE INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY.
THIS SERIES TERM SHEET CONTAINS STRUCTURAL INFORMATION ABOUT THE
CERTIFICATES; HOWEVER, THIS SERIES TERM SHEET DOES NOT CONTAIN COMPLETE
INFORMATION ABOUT THE CERTIFICATES. THE INFORMATION IN THIS SERIES TERM SHEET IS
PRELIMINARY AND WILL BE SUPERSEDED BY THE INFORMATION CONTAINED IN THE
PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. YOU SHOULD READ BOTH THE PROSPECTUS
SUPPLEMENT AND THE PROSPECTUS. THE TRUST AND THE DISCOVER CARD PORTFOLIO MAY NOT
PERFORM IN THE FUTURE AS THEY HAVE PERFORMED IN THE PAST. PRICE AND AVAILABILITY
OF THE CERTIFICATES MAY CHANGE WITHOUT NOTICE.
WE HAVE PREPARED THIS SERIES TERM SHEET SOLELY FOR INFORMATIONAL
PURPOSES. THIS SERIES TERM SHEET IS NOT AN OFFER TO BUY OR SELL ANY SECURITY,
NOR IS IT A REQUEST TO PARTICIPATE IN ANY PARTICULAR TRADING STRATEGY. GREENWOOD
MAY NOT OFFER OR SELL THE CERTIFICATES IN ANY STATE WHERE THE OFFER OR SALE IS
PROHIBITED. GREENWOOD WILL NOT SELL YOU ANY OF THE CERTIFICATES UNLESS YOU HAVE
RECEIVED BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. THE UNDERWRITERS MAY
HOLD OR TRADE SECURITIES OF THE TRUST OR GREENWOOD AND MAY ALSO PERFORM
INVESTMENT BANKING SERVICES FOR THE TRUST AND GREENWOOD.
MORGAN STANLEY DEAN WITTER
THIS SERIES TERM SHEET MAY NOT BE DISTRIBUTED TO PRIVATE CUSTOMERS AS
DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY.
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This series term sheet will be superseded in its entirety by the
information appearing in the prospectus supplement, the prospectus and the
Series 2000-7 Supplement to the Pooling and Servicing Agreement.
TITLE OF SECURITIES.................. Discover Card Master Trust I, Series
2000-7 Floating Rate Class A Credit Card
Pass-Through Certificates and Discover
Card Master Trust I, Series 2000-7
Floating Rate Class B Credit Card
Pass-Through Certificates.
INTEREST RATE........................ Class A Certificates: LIBOR plus 0.1725%
per year.
Class B Certificates: LIBOR plus _____%
per year.
The Trustee will calculate interest on
the Certificates on the basis of the
actual number of days elapsed and a
360-day year.
"LIBOR" will mean the London interbank
offered rate for three-month United
States dollar deposits, determined two
business days before the start of each
interest accrual period. If an
Amortization Event occurs for Series
2000-7, LIBOR will mean the London
interbank offered rate for one-month
United States dollar deposits,
determined two business days before the
start of each interest accrual period.
INTEREST PAYMENT DATES............... The 15th day of each March, June,
September and December (or the next
business day), beginning in September
2000, or the 15th day of each month if
an Amortization Event occurs for Series
2000-7.
EXPECTED MATURITY DATES.............. Class A Certificates: June 15, 2007 (or
the next business day). If an
Amortization Event occurs, the Trust
will pay principal monthly and the final
principal payment may be made before or
after June 15, 2007.
Class B Certificates: June 15, 2007 (or
the next business day). If an
Amortization Event occurs, the Trust
will pay principal monthly and the final
payment of principal may be made either
before or after June 15, 2007. The Trust
must generally pay all Class A principal
before it pays any Class B principal.
An "Amortization Event" is an event that
will cause the Trust to begin repaying
principal on a monthly basis.
SERIES TERMINATION DATE.............. The first business day following
December 15, 2009 (or, if December 15,
2009 is not a business day, the second
business day following December 15,
2009). The Series Termination Date is
the last day on which the Trust will pay
principal on the Certificates.
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SUBORDINATION OF CLASS B CERTIFICATES
(CLASS A CREDIT ENHANCEMENT)......... The Class B Certificates are
subordinated to the Class A
Certificates, up to a specified dollar
amount, known as the "Available
Subordinated Amount."
AVAILABLE SUBORDINATED AMOUNT........ Initially $111,842,125, which may be
reduced, reinstated or increased from
time to time. The Available Subordinated
Amount will increase by:
- $4,473,685 after a Supplemental Credit
Enhancement Event, if Greenwood has
not made an Effective Alternative
Credit Support Election;
- $40,263,165 after an Effective
Alternative Credit Support Election,
if a Supplemental Credit Enhancement
Event has occurred; or
- $44,736,850 after an Effective
Alternative Credit Support Election,
if a Supplemental Credit Enhancement
Event has not occurred.
A "Supplemental Credit Enhancement
Event" will occur the first time
Standard & Poor's Ratings Services
withdraws the long-term debt or deposit
rating of Greenwood (or an additional
seller, if any) or reduces this rating
below BBB -.
"Effective Alternative Credit Support
Election" will mean an effective
election made by Greenwood to change the
way in which the Trust allocates finance
charge collections to this Series. To
make this election, Greenwood must
deposit additional funds into the cash
collateral account discussed below.
CASH COLLATERAL ACCOUNT
(CLASS B CREDIT ENHANCEMENT)......... Greenwood will arrange to have a cash
collateral account established and
funded with $67,105,275 for the direct
benefit of the Class B investors (the
"Credit Enhancement Account") on the
date the Certificates are issued. The
Trustee may withdraw funds from this
account to reimburse the Class B
investors for amounts that would
otherwise reduce their interest in the
Trust or affect their interest payments.
The amount on deposit in this account
may decrease or increase on future
Distribution Dates. A "Distribution
Date" is the 15th calendar day of each
month (or the next business day),
beginning in July 2000.
The maximum amount of Credit Enhancement
as of any Distribution Date will be:
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Before a Supplemental Credit Enhancement
Event or an Effective Alternative Credit
Support Election
- 7.5% of the Series Investor Interest
as of the end of the preceding month
(but not less than $8,947,370); or
After a Supplemental Credit Enhancement
Event but before an Effective
Alternative Credit Support Election
- 8.0% of the Series Investor Interest
as of the end of the preceding month
(but not less than $8,947,370); or
After an Effective Alternative Credit
Support Election
- 12.5% of the Series Investor Interest
as of the end of the preceding month
(but not less than $8,947,370).
However, if an Amortization Event has
occurred, the maximum amount of Credit
Enhancement will be the amount on
deposit in the Credit Enhancement
Account on the Distribution Date
immediately before the Amortization
Event occurred.
"Series Investor Interest" will mean
$894,737,000 minus
- the amount of principal collections on
deposit for the benefit of investors
in this Series (after giving effect to
losses of principal on investments of
these funds),
- the aggregate amount of principal
previously paid to investors in this
Series, and
- the aggregate amount of investor
losses resulting from accounts in
which the receivables have been
charged-off as uncollectible (after
giving effect to all provisions in the
Series Supplement to reimburse these
charged-off amounts).
RATING OF THE INVESTOR CERTIFICATES.. The Trust will only issue the
Certificates if Standard & Poor's has
rated the Class A Certificates "AAA" and
the Class B Certificates at least "A"
and Moody's Investors Service, Inc. has
rated the Class A Certificates "Aaa" and
has rated the Class B Certificates at
least "A2."
ERISA CONSIDERATIONS................. Greenwood believes that employee benefit
plans subject to ERISA may acquire Class
A Certificates; however, advisers to
these plans should consult their own
counsel. Employee benefit plans subject
to ERISA may not acquire the Class B
Certificates.
LISTING.............................. Greenwood expects to list the
Certificates on the Luxembourg Stock
Exchange to facilitate trading in
non-U.S. markets.
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