SVB Financial Group Announces Pricing of $750 Million Preferred Stock Depositary Shares Offering and $500 Million 1.800% Senior Notes Offering

Rhea-AI Summary

SVB Financial Group (NASDAQ: SIVB) has announced the pricing of an underwritten offering of 750,000 depositary shares for a total of $750 million, representing a 1/100th interest in a share of its Series B Non-Cumulative Perpetual Preferred Stock, alongside $500 million in 1.800% Senior Notes due 2031. The offerings are set to close on February 2, 2021, subject to customary conditions. Proceeds from the offerings will be used for general corporate purposes, further solidifying SVB's financial position.

Positive

• Raising $750 million from depositary shares enhances capital structure.
• Issuing $500 million in Senior Notes due 2031 allows for debt financing at a low interest rate.

Negative

• Potential dilution of existing shareholders due to the preferred stock offering.

SANTA CLARA, Calif., Jan. 26, 2021 /PRNewswire/ -- SVB Financial Group ("SVB") (NASDAQ: SIVB) today announced the pricing of an underwritten offering of 750,000 depositary shares, each representing a 1/100^th interest in a share of its Series B Non-Cumulative Perpetual Preferred Stock, liquidation amount $100,000 per share (equivalent to $1,000 per depositary share) at an aggregate offering price of $750 million.  SVB today also announced the pricing of an underwritten offering of $500 million in aggregate principal amount of its 1.800% Senior Notes due 2031 (the "Notes"). The Notes will be sold at 99.672% of the principal amount and will bear interest semi-annually. Both offerings are expected to close initially on February 2, 2021, subject to customary closing conditions. SVB intends to use the net proceeds of both offerings for general corporate purposes.

Goldman Sachs & Co. LLC and BofA Securities, Inc. are acting as joint book-running managers 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, any 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 contacting Goldman Sachs & Co. LLC at 1-866-471-2526 or by emailing Prospectus-NY@ny.email.gs.com or BofA Securities, Inc. at 1-800-294-1322. 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 more than 35 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 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]

SOURCE: SVB Financial Group

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SOURCE Silicon Valley Bank

FAQ

What is the purpose of SVB's $750 million depositary shares offering?

The offering aims to enhance SVB's capital structure for general corporate purposes.

When will SVB's offerings close?

The offerings are expected to close on February 2, 2021, subject to customary closing conditions.

What are the interest rates for the Senior Notes offered by SVB?

The Senior Notes will bear interest at a rate of 1.800%.

How much capital is SVB raising through the depositary shares offering?

SVB is raising $750 million through the offering of depositary shares.

What risks are associated with SVB's preferred stock offering?

The preferred stock offering may result in dilution for existing shareholders.