SANTA
CLARA, Calif., March 8,
2023 /PRNewswire/ -- SVB Financial Group ("SVB")
(NASDAQ: SIVB), announced today that it intends to offer
$1.25 billion of its common stock and
$500 million of depositary shares,
consisting of 10 million depositary shares each representing a
1/20th interest in a share of its Series F Mandatory
Convertible Preferred Stock ("Preferred Stock"), liquidation
preference $1,000 per share
(equivalent to a liquidation preference of $50 per
depositary share), in separate underwritten registered public
offerings. In addition, prior to commencing the offerings, SVB
entered into a subscription agreement with General Atlantic, a
leading global growth equity investor, to purchase $500 million of common stock at the public
offering price in the offering of common stock in a separate
private transaction. The subscription agreement with General
Atlantic is contingent on the closing of the offering of common
stock and is expected to close shortly thereafter. SVB also intends
to grant (i) the underwriters in the common stock offering an
option to purchase up to an additional $187.5 million of common stock and (ii) the
underwriters in the Preferred Stock offering an over-allotment
option to purchase up to an additional $75
million, or 1.5 million depositary shares in the Preferred
Stock offering. SVB intends to use the net proceeds from the
offerings for general corporate purposes. The consummation of each
offering is not contingent upon the consummation of the other
offering.
Additionally, earlier today, SVB completed the sale of
substantially of its available for sale securities portfolio.
SVB sold approximately $21 billion of
securities, which will result in an after tax loss of approximately
$1.8 billion in the first quarter of
2023.
Goldman Sachs & Co. LLC and SVB Securities will act as
book-running managers for each offering.
Each offering is being made pursuant to an effective shelf
registration statement, including a prospectus and a separate
prospectus supplement, filed by SVB with the U.S. Securities and
Exchange Commission ("SEC"). Investors should read the prospectus
in that registration statement, the applicable prospectus
supplement and other documents SVB has filed with the SEC for more
complete information about SVB and the relevant 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 applicable prospectus
supplement, if you request it by contacting Goldman Sachs & Co.
LLC at 200 West Street, New York,
NY 10282, Attention: Prospectus Department, telephone:
1-866-471-2526, facsimile: 212-902-9316 or by emailing
prospectus-ny@ny.email.gs.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
SVB is the financial partner of the innovation economy, helping
individuals, investors and the world's most innovative companies
achieve their ambitious goals. SVB's businesses - Silicon Valley
Bank, SVB Capital, SVB Private and SVB Securities - together offer
the services that dynamic and fast-growing clients require as they
grow, including commercial banking, venture investing, wealth
planning and investment banking. Headquartered in Santa Clara, California, SVB operates in
centers of innovation around the world.
SVB Financial Group (SVB) (Nasdaq: SIVB) is the holding
company for all business units and groups. © 2023 SVB Financial
Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON
VALLEY BANK, SVB SECURITIES, SVB PRIVATE, SVB CAPITAL 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. [SIVB-F]
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. 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.
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SOURCE SVB Financial Group