By Rebecca Melvin and Cristal Cody
Concord, N.H., Oct. 26 – SVB Financial Group has detailed $650 million of senior notes and $1.6 billion of $1,000-par non-cumulative perpetual preferred stock in two series, according to FWP filings with the Securities and Exchange Commission.
The company priced $650 million of 1.8% senior notes due 2026 (A3/BBB) at 99.876 to yield 1.826%, or a spread over Treasuries of 65 basis points. The notes also have a make-whole call prior to Sept. 28, 2026 at a Treasuries plus 10 bps premium, followed by a par call.
The issuer priced $1 billion of series D non-cumulative perpetual preferred stock (Baa2/BB) with an initial 4.25% dividend, which will reset at a rate of Treasuries plus 307.4 bps on Nov. 15, 2026 and every five years thereafter. The preferreds are also callable on or after 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.
The company also priced $600 million of series E non-cumulative perpetual preferreds (Baa2/BB) with an initial 4.7% dividend, which will reset at a rate of Treasuries plus 306.4 bps on Nov. 15, 2031 and every 10 years thereafter. They also are callable on or after Nov. 15, 2031.
The series E preferreds were talked in the 4.875% area, the market source said.
BofA Securities, Inc. is the bookrunner.
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: | Oct. 28, 2026
|
| Securities: | Senior notes
|
| Coupon: | 1.8%
|
| Price: | 99.876
|
| Yield: | 1.826%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole call prior to Sept. 28, 2026 at Treasuries plus 10 bps premium, and then par call
|
| Ratings: | Moody’s: A3
|
| S&P: BBB
|
| Cusip: | 78486QAL5
|
|
|
| Series D preferreds
|
| Amount: | $1 billion
|
| Maturity: | Perpetual
|
| Securities: | Series D non-cumulative preferred stock
|
| Dividend: | 4.25% for five years, then resets to Treasuries plus 307.4 bps
|
| Reset date: | On Nov. 15, 2026, and every five years thereafter
|
| Call: | On or after Nov. 15, 2026
|
| Ratings: | Moody’s: Baa2
|
| S&P: BB
|
| Talk: | 4.375% to 4.5% area
|
| Cusip: | 78486QAP6
|
|
|
| Series E preferreds
|
| Amount: | $600 million
|
| Maturity: | Perpetual
|
| Securities: | Series E non-cumulative preferred stock
|
| Dividend: | 4.7% for 10 years, then resets to Treasuries plus 306.4 bps
|
| Reset date: | On Nov. 15, 2031 and every 10 years thereafter
|
| Call: | On or after Nov. 15, 2031
|
| Ratings: | Moody’s: Baa2
|
| S&P: BB
|
| Talk: | 4.875% area
|
| Cusip: | 78486QAQ4
|
|
|
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