SVB Financial to sell $25-par fixed-rate non-cumulative preferreds

By James McCandless

San Antonio, Dec. 2 – SVB Financial Group plans to price an offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock, according to a 424B2 filing with the Securities and Exchange Commission.

BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The co-manager is Keefe, Bruyette & Woods.

Dividends are payable quarterly on Feb. 15, May 15, Aug. 15 and Nov. 15 of each year, beginning on Feb. 15, 2020.

The preferreds are redeemable on or after Feb. 15, 2025 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 the retirement of a portion of its outstanding debt, including the redemption of its 5.375% senior notes due 2020, working capital, capital investments and expenditures, and capitalizing the bank or other operating subsidiaries allowing continued support of bank clients.

The company plans to list the preferreds on the Nasdaq under the symbol “SIVBP.”

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

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