SVB Financial offers series B non-cumulative perpetual preferreds

By Rebecca Melvin

New York, Jan. 26 – SVB Financial Group is offering depositary shares representing series B non-cumulative perpetual preferred stock, according to a 424B2 filing with the Securities and Exchange Commission.

SVB is concurrently offering senior notes, but the depositary shares aren’t contingent on the senior notes offering and the company may sell one or the other or both.

Goldman Sachs & Co. LLC and BofA Securities, Inc. are the joint bookrunners of the preferred stock offering, and SVB Leerink is co-manager.

Dividends are payable quarterly on Feb. 15, May 15, Aug. 15 and Nov. 15 of each year, beginning on May 15, 2021.

The preferreds are redeemable on or after Feb. 15, 2031 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

SVB plans to use the proceeds for general corporate purposes, which may include working capital, capital investments and expenditures, supporting capital ratios at the bank and capitalizing other operating subsidiaries allowing continued support of bank clients.

Neither shares of the series B preferred stock nor the depositary shares will be listed on any securities exchange or automated quotation system.

SVB is a Santa Clara, Calif.-based diversified financial services company.

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