Silicon Valley Bank prices tender offers for 5.7% notes, 6.05% notes

By Angela McDaniels

Tacoma, Wash., May 2 - SVB Financial Group announced the purchase prices that subsidiary Silicon Valley Bank will pay in the tender offers for its $250 million 5.7% senior notes due 2012 and $250 million 6.05% subordinated notes due 2017.

For each $1,000 principal amount, the price is $1,052.24 for the 5.7% notes and $1,124.80 for the 6.05% notes, according to a news release from SVB.

Silicon Valley Bank will also pay accrued interest up to but excluding the settlement date, which is expected to be May 3.

The prices 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 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 offers began April 21 and were set to expire at 5 p.m. ET on May 2.

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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