By Cristal Cody
Chicago, May 6 – SVB Financial Group priced $1 billion of depositary shares representing series C non-cumulative perpetual preferred stock with a 4% dividend on Thursday, according to a market source.
The $1,000-par preferreds had been talked with a dividend in the 4.25% to 4.375% area.
Dividends will be payable on Feb. 15, May 15, Aug. 15 and Nov. 15 of each year, beginning on Aug. 15, 2021, according to a 424B2 filing with the Securities and Exchange Commission.
The preferreds are callable in whole or in part beginning May 15, 2026 or in whole after a regulatory capital treatment event. In each case, the redemption price is par plus accrued dividends.
SVB concurrently offered $500 million of 2.1% senior notes due May 15, 2028.
BofA Securities, Inc. and Goldman Sachs & Co. LLC are the joint bookrunners of the preferred stock offering.
SVB plans to use the proceeds for general corporate purposes, which may include working capital, capital investments and expenditures and capitalizing other operating subsidiaries allowing continued support of bank clients.
Neither shares of the series C 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.
| Issuer: | SVB Financial Group
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| Issue: | Series C non-cumulative perpetual preferred stock
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| Amount: | $1 billion, or 1 million shares
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| Maturity: | Perpetual
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| Bookrunners: | BofA Securities, Inc. and Goldman Sachs & Co. LLC
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| Co-managers: | SVB Leerink LLC
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| Dividend: | 4%
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| Call features: | After May 15, 2026 at par
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| Trade date: | May 6
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| Settlement date: | May 13
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| Distribution: | SEC registered
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| Price talk: | Dividend in the 4.25% to 4.375% area
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