SVB Financial forms restructuring committee to explore alternatives

By Sarah Lizee

Olympia, Wash., March 13 – SVB Financial Group’s board of directors has appointed a restructuring committee consisting of five independent directors to explore strategic alternatives for the holding company and its SVB Capital and SVB Securities businesses, as well as its other assets and investments.

This follows Silicon Valley Bank’s takeover by the Federal Deposit Insurance Corp. after parent SVB Financial’s attempted $2.25 billion capital raise, which included the convertible market’s first mandatory offering of the year, failed amid a bank run.

The company said both SVB Capital and SVB Securities are separate divisions of the group and are not part of Silicon Valley Bank.

The members of the holding company’s restructuring committee are Eric Benhamou, Tom King, Kay Matthews, Mary Miller and Kate Mitchell.

In addition to exploring potential transactions for the SVB Capital and SVB Securities businesses, the committee will explore all alternatives for addressing the roughly $3 billion of funded debt held by the holding company.

The company said this debt is recourse only to SVB Financial Group and is not guaranteed by the subsidiaries.

The holding company is being advised by Centerview Partners LLC, Sullivan & Cromwell LLP and Alvarez & Marsal as financial, legal and restructuring advisers, respectively, in conjunction with the committee’s activities.

The financial services and bank holding company is based in Santa Clara, Calif.

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