By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Oct. 25 – SVB Financial Group priced $650 million of senior notes as well as a total of $1.6 billion of $1,000-par non-cumulative perpetual preferred stock in two series, according to a news release on Monday.
The company priced $650 million of 1.8% senior notes due 2026 at 99.876.
It priced $1 billion of series D perpetual non-callable five-year preferreds with an initial 4.25% dividend, which will reset at a rate of Treasuries plus 307.4 basis points on Nov. 15, 2026.
Price talk for the series D perpetual preferreds was in the 4.375% to 4.5% area, according to a market source.
SVB also priced $600 million of series E perpetual non-callable10-year preferreds with an initial 4.7% dividend, which will reset at a rate of Treasuries plus 306.4 bps on Nov. 15, 2031.
The series E preferreds were talked at the 4.875% area, the market source said.
BofA Securities, Inc. is the bookrunner with SVB Leerink LLC as co-manager.
Proceeds will be used for general corporate purposes.
The financial services and bank holding company is based in Santa Clara, Calif.
| Issuer: | SVB Financial Group
|
| Amount: | $2.25 billion
|
| Issue: | Senior notes and non-cumulative perpetual preferred stock
|
| Bookrunner: | BofA Securities, Inc.
|
| Co-manager: | SVB Leerink LLC
|
| Pricing date: | Oct. 25
|
| Settlement date: | Oct. 28
|
|
|
| Senior notes
|
| Amount: | $650 million
|
| Maturity: | 2026
|
| Coupon: | 1.8%
|
| Price: | 99.876
|
|
|
| Series D preferreds
|
| Amount: | $1 billion
|
| Call option: | After five years
|
| Dividend: | 4.25% for five years, then Treasuries plus 307.4 bps
|
| Talk: | 4.375% to 4.5% area
|
|
|
| Series E preferreds
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| Amount: | $600 mllion
|
| Call option: | After 10 years
|
| Dividend: | 4.7% for 10 years, then Treasuries plus 306.4 bps
|
| Talk: | 4.875% area
|
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