Silicon Valley Bank launches cash tender offers for 5.7%, 6.05% notes

By Marisa Wong

Madison, Wis., April 21 - SVB Financial Group announced that its wholly owned subsidiary, Silicon Valley Bank, has started cash tender offers to repurchase some of its outstanding notes in order to reduce its debt.

Silicon Valley Bank is offering to repurchase any and all of its $250 million 5.7% senior notes due 2012 and any and all of its $250 million 6.05% subordinated notes due 2017.

The purchase price per $1,000 principal amount of notes from each series will equal the sum of (i) the yield to maturity of the applicable U.S. Treasury reference security, as measured by the dealer manager at 10 a.m. ET on May 2, and (ii) the applicable fixed spread for each series of notes.

For the 5.7% notes, the reference security is the 0.75% Treasury due March 31, 2013, and the fixed spread is 25 basis points. For the 6.05% notes, the reference security is the 2.25% Treasury due March 31, 2016, and the fixed spread is 180 bps.

The bank will also pay accrued interest to but excluding the settlement date.

The offers are scheduled to expire at 5 p.m. ET on May 2. The settlement date is expected to be May 3.

Goldman Sachs & Co. (800 828-3182 or 212 855-9063) is the dealer manager, and Bondholder Communications Group (212 809-2663, for banks and brokers, or 888 385-2663) is the information and tender agent.

SVB Financial is a financial services and bank holding company based in Santa Clara, Calif.

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