SVB Financial Group Announces Pricing of $1 Billion Series D Preferred Stock Depositary Shares, $600 Million Series E Preferred Stock Depositary Shares and $650 Million 1.800% Senior Notes Offerings

Rhea-AI Summary

SVB Financial Group (NASDAQ: SIVB) has priced an underwritten offering of 1 million depositary shares for its Series D Preferred Stock at an aggregate offering price of $1 billion and 600,000 depositary shares for its Series E Preferred Stock at $600 million. Dividends will accrue at rates of 4.250% for Series D and 4.700% for Series E. Additionally, SVB priced $650 million in 1.800% Senior Notes due 2026. The offerings are expected to close on October 28, 2021, with proceeds earmarked for general corporate purposes.

Positive

• Successful pricing of $1 billion in Series D Preferred Stock.
• Successful pricing of $600 million in Series E Preferred Stock.
• Successful pricing of $650 million in Senior Notes.

Negative

• No significant negative aspects reported.

SANTA CLARA, Calif., Oct. 25, 2021 /PRNewswire/ -- SVB Financial Group ("SVB") (NASDAQ: SIVB) today announced the pricing of an underwritten offering of 1,000,000 depositary shares, each representing a 1/100^th interest in a share of its Series D Non-Cumulative Perpetual Preferred Stock ("Series D Preferred Stock"), liquidation amount $100,000 per share (equivalent to $1,000 per depositary share) at an aggregate offering price of $1 billion and an underwritten offering of 600,000 depositary shares, each representing a 1/100^th interest in a share of its Series E Non-Cumulative Perpetual Preferred Stock ("Series E Preferred Stock"), liquidation amount $100,000 per share (equivalent to $1,000 per depositary share) at an aggregate offering price of $600 million. Dividends will accrue on the Series D Preferred Stock at a rate per annum equal to (i) 4.250% from the original issue date of the Series D Preferred Stock to, but excluding, November 15, 2026, and (ii) the five-year treasury rate as of the most recent reset dividend determination date plus 3.074% for each reset period from, and including, November 15, 2026. Dividends will accrue on the Series E Preferred Stock at a rate per annum equal to (i) 4.700% from the original issue date of the Series E Preferred Stock to, but excluding, November 15, 2031, and (ii) the ten-year treasury rate as of the most recent reset dividend determination date plus 3.064% for each reset period from, and including, November 15, 2031. Dividends will be payable quarterly in arrears, only when, as and if declared by SVB's board of directors (or a duly authorized committee of the board).

SVB today also announced the pricing of an underwritten offering of $650 million in aggregate principal amount of its 1.800% Senior Notes due 2026 (the "Notes"). The Notes will be sold at 99.876% of the principal amount and will bear interest semi-annually.

The offerings are expected to close on October 28, 2021, subject to the satisfaction of customary closing conditions. SVB intends to use the net proceeds of the offerings for general corporate purposes.

BofA Securities, Inc. is acting as sole book-runner for the offerings. SVB Leerink LLC is acting as co-manager.

Each offering is being made pursuant to an effective shelf registration statement, including a prospectus and prospectus supplement, filed by SVB with the U.S. Securities and Exchange Commission ("SEC"). For each offering, investors should read the prospectus in that registration statement, the related prospectus supplement and other documents SVB has filed with the SEC for more complete information about SVB and the offering before investing. These documents may be obtained for free by visiting the SEC website at www.sec.gov. Alternatively, for each offering, SVB, the underwriter or any dealer participating in the offering will arrange to send you the prospectus contained in the registration statement, together with the related prospectus supplement, if you request it by calling BofA Securities, Inc. at 1-800-294-1322 or emailing dg.prospectus_requests@bofa.com. This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About SVB Financial Group
For nearly 40 years, SVB Financial Group (NASDAQ: SIVB) and its subsidiaries have helped innovative companies and their investors move bold ideas forward, fast. SVB Financial Group's businesses, including Silicon Valley Bank, offer commercial, investment, and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life science and healthcare, private equity and venture capital, and premium wine industries. Headquartered in Santa Clara, California, SVB Financial Group operates in centers of innovation around the world. 

SVB Financial Group is the holding company for all business units and groups © 2021 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond SVB Financial Group's control. Forward-looking statements are statements that are not historical facts and generally can be identified by the use of such words as "becoming," "may," "will," "should," "could," "would," "predict," "potential," "continue," "anticipate," "believe," "estimate," "seek," "expect," "plan," "intend," the negative of such words or comparable terminology. Although SVB Financial Group believes that the expectations reflected in SVB Financial Group's forward-looking statements are reasonable, SVB Financial Group has based these expectations on its current beliefs as well as its assumptions, and such expectations may not prove to be correct. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside SVB Financial Group's control. Forward-looking statements related to the offerings and SVB Financial Group's actual results of operations and financial performance could differ significantly from those expressed in or implied by SVB Financial Group forward-looking statements (for example, due to the COVID-19 pandemic and its effects on the economic and business environments in which SVB Financial Group operates). The forward-looking statements included in this disclosure are made only as of the date of this disclosure. SVB Financial Group does not intend, and undertakes no obligation, to update these forward-looking statements.

[SIVB-F]

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SOURCE SVB Financial Group

FAQ

What is the pricing for SVB's Series D Preferred Stock offering?

SVB has priced its Series D Preferred Stock offering at $1 billion for 1 million depositary shares.

How much has SVB raised through the Series E Preferred Stock offering?

SVB raised $600 million through the offering of 600,000 depositary shares of Series E Preferred Stock.

What is the interest rate on SVB's Senior Notes due 2026?

The interest rate on SVB's Senior Notes due 2026 is 1.800%.

When is the expected closing date for SVB's offerings?

The expected closing date for SVB's offerings is October 28, 2021.

What will SVB do with the proceeds from the offerings?

SVB intends to use the net proceeds from the offerings for general corporate purposes.