SVB Financial Group (SIVB) Announces $300M Common Stock Offering
SVB Financial Group (NASDAQ: SIVB) today announced that it intends to offer, subject to market and other conditions, approximately $300,000,000 of common stock. In connection with the offering, the underwriters will have an option to purchase up to an additional 15% of the number of shares of common stock sold in the offering to cover over-allotments, if any.
Subject to consultation with the company's banking regulators, the company intends to notify the U.S. Treasury of its intent to repurchase all 235,000 shares of the company's outstanding Series B Fixed Rate Cumulative Perpetual Preferred Stock and the warrant to purchase 708,116 shares of common stock issued to the U.S. Treasury under its Capital Purchase Program. The approvals of the U.S. Treasury and the company's banking regulators are required for the repurchase of these securities. The company can make no assurances as to when, or if, it will receive such approvals. If the company receives such approvals and repurchases the Series B Preferred Stock and the warrant, it expects to fund any such repurchase with a portion of the net proceeds of the offering. To the extent the company does not use the net proceeds of the offering to repurchase the Series B Preferred Stock and the warrant, it will use the net proceeds for general corporate purposes, including working capital and continued lending to clients through its banking subsidiary, Silicon Valley Bank.
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