Silvergate Announces Closing of Public Offering of Class A Common Stock

Rhea-AI Summary

Silvergate Capital Corporation (NYSE: SI) has successfully completed a public offering of 3,806,895 shares of Class A common stock at $145.00 each, raising approximately $552.0 million before discounts. The proceeds aim to bolster regulatory capital levels for Silvergate and its subsidiary, Silvergate Bank, and will support growth initiatives including the SEN Leverage product and digital asset services. The offering was managed by Goldman Sachs, J.P. Morgan, and Keefe, Bruyette & Woods among others.

Positive

• Raised approximately $552.0 million through public offering to enhance regulatory capital.
• Funds intended to support growth initiatives including digital asset services.

Negative

• Dilution risks for existing shareholders due to the additional stock offering.

LA JOLLA, Calif.--(BUSINESS WIRE)-- Silvergate Capital Corporation (NYSE: SI) (“Silvergate” or the “Company”) announced today that it has completed its underwritten public offering of 3,806,895 shares of Class A common stock at a price of $145.00 per share, before underwriting discounts, including 496,551 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 $552.0 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 product, custody and other digital asset services. The precise amounts and timing of the application of proceeds will depend on the requirements of the Company and the Bank.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Keefe, Bruyette & Woods, A Stifel Company acted as joint book-running managers. Compass Point, Craig-Hallum and Wedbush Securities 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; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by calling (866) 803-9204 or by emailing prospectus-eq_fi@jpmchase.com; or 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.

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/20211209006006/en/

Investor Relations:

Hunter Stenback/Ashna Vasa

(858) 200-3782

investors@silvergate.com

Source: Silvergate Capital Corporation

FAQ

What was the stock offering amount for Silvergate (SI)?

Silvergate Capital Corporation completed a stock offering of 3,806,895 shares at $145.00 per share, raising approximately $552.0 million.

How will Silvergate (SI) use the proceeds from the stock offering?

The proceeds will be used to supplement regulatory capital levels and support growth initiatives, including digital asset services.

Who managed the Silvergate (SI) stock offering?

The offering was managed by Goldman Sachs, J.P. Morgan Securities, and Keefe, Bruyette & Woods.

What are the risks associated with the stock offering by Silvergate (SI)?

Existing shareholders may face dilution of their shares due to the increase in stock outstanding from the offering.