Providian Financial Corporation Announces Pricing of Convertible Notes

Providian Financial Corporation Announces Pricing of Convertible Notes 


SAN FRANCISCO, March 17  /PRNewswire-FirstCall/ -- Providian Financial
Corporation  today announced that it has agreed to sell $250,000,000 in original
principal amount of its 2-3/4% Convertible Cash to Accreting Senior Notes due
March 15, 2016 through Citigroup Global Markets Inc., Goldman, Sachs & Co. and
Morgan Stanley & Co. as joint book-running managers and JPMorgan and Deutsche
Bank Securities as co-managers.  Providian may also sell up to an additional
$37,500,000 original principal amount of the notes upon exercise of an over
allotment option granted to the underwriters in connection with the offering. 
The offering is expected to close on March 19, 2004.

The notes will bear interest at the rate of 2-3/4% per annum until March 11,
2011 and thereafter the notes will bear cash interest at the rate of 1-3/4% per
annum, with the principal amount accreting after March 11, 2011 to provide a
2-3/4% aggregate annual yield-to-maturity (computed on a semiannual bond
equivalent yield basis from March 15, 2011, after giving cash interest effect to
paid but excluding contingent interest, if any).  The Notes will be convertible
into shares of Providian Financial's common stock upon the achievement of a
predetermined stock price or the satisfaction of other conditions at an initial
conversion rate of 58.7941 shares of common stock for each $1,000 principal
amount of Notes that are converted (equivalent to a conversion price of
approximately $17.01 per share).

A copy of the prospectus can be obtained from Citigroup Global Markets Inc.,
Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, Attn: Prospectus
Department, from Goldman, Sachs & Co. at 85 Broad Street, New York, NY 10004, or
from Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036, Attn:
 Prospectus Department.

About Providian

San Francisco-based Providian Financial (http://www.providian.com/) is a leading
provider of credit cards and deposit products to customers throughout the U.S.
By combining experience, analysis, technology, and outstanding customer service,
Providian seeks to build long-lasting relationships with its customers by
providing products and services that meet their evolving financial needs. 

DATASOURCE: Providian Financial Corporation



CONTACT:  investors, Jack Carsky, [phone], or media, Alan Elias,

[phone], both for Providian Financial Corporation



Web site:  http://www.providian.com/

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