Silvergate Announces Closing of Follow-on Public Offering of Class A Common Stock

Rhea-AI Summary

Silvergate Capital Corporation has successfully completed a public offering of 4,563,493 shares of its Class A common stock at $63.00 per share, generating gross proceeds of approximately $287.5 million. The funds will be used to enhance regulatory capital levels for Silvergate and its subsidiary, Silvergate Bank, and for general corporate purposes, including supporting growth initiatives and the Bank's SEN Leverage lending product. The offering was led by major underwriters including Goldman Sachs & Co. LLC and Canaccord Genuity.

Positive

• Gross proceeds of approximately $287.5 million from the stock offering.
• Intended to strengthen regulatory capital levels for Silvergate and Silvergate Bank.
• Plans to support growth initiatives and strategic acquisitions.

Negative

• Issuance of new shares may lead to shareholder dilution.

Silvergate Capital Corporation (“Silvergate” or the “Company”) announced today that it has completed its underwritten public offering of 4,563,493 shares of Class A common stock at a price of $63.00 per share, before underwriting discounts, including 595,238 additional shares of Class A common stock upon the exercise in full by the underwriters of their option to purchase additional shares.

The aggregate gross proceeds of the offering were approximately $287.5 million before discounts and expenses. The Company intends to use the net proceeds from the proposed offering to further supplement the regulatory capital levels of the Company and its wholly-owned subsidiary, Silvergate Bank (the “Bank”), and for other general corporate purposes, which may include providing capital to support the Company’s growth organically or through strategic acquisitions, and other growth initiatives, including the Bank’s SEN Leverage lending product, custody and other digital asset services.

Goldman Sachs & Co. LLC, Keefe, Bruyette & Woods, A Stifel Company, and Canaccord Genuity acted as joint lead book-running managers. Compass Point and Craig-Hallum acted as co-managers for the offering. Silvergate was represented by Holland & Knight LLP. The underwriters were represented by Davis Polk & Wardwell LLP.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering was made by means of an effective shelf registration statement, including a preliminary prospectus supplement and final prospectus supplement, copies of which may be obtained by contacting Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 866-471-2526, facsimile: 212-902-9316, e-mail: prospectus-ny@ny.email.gs.com; Keefe, Bruyette & Woods, Inc., 787 7th Avenue, 4th Floor, New York, New York 10019, Attn: Equity Syndicate, by emailing kbwsyndicatedesk@kbw.com, or by telephone at 1-800-966-1559; or Canaccord Genuity LLC, 99 High Street, Suite 1200, Boston, Massachusetts 02110, Attn: Syndicate Department, by telephone at (617) 371-3900, or by email at prospectus@canaccordgenuity.com.

About Silvergate

Silvergate Capital Corporation (NYSE: SI) is the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry. The Company’s real-time payments platform, known as the Silvergate Exchange Network, is at the heart of its customer-centric suite of payments, lending and funding solutions serving an expanding class of digital currency companies and investors around the world. Silvergate is enabling the rapid growth of digital currency markets and reshaping global commerce for a digital currency future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210126005896/en/

FAQ

What was the share price of the Silvergate public offering on October 2023?

The public offering price was $63.00 per share.

How many shares did Silvergate Capital Corporation offer in its recent public offering?

Silvergate offered a total of 4,563,493 shares.

What are the intended uses for the net proceeds from Silvergate's public offering?

The net proceeds will supplement regulatory capital levels and support growth initiatives, including the SEN Leverage lending product.

Who were the underwriters for Silvergate's recent stock offering?

The underwriters included Goldman Sachs & Co. LLC, Keefe, Bruyette & Woods, and Canaccord Genuity.

What is the potential impact of Silvergate's stock offering on current shareholders?

The issuance of new shares could lead to shareholder dilution.