SVB Financial To Offer $300M Of Common Stock

SANTA CLARA, Calif. (AP) — SVB Financial Group, the holding company for SVB Silicon Valley Bank, said Monday it plans to sell shares valued at about $300 million in a common stock offering.

SVB Financial also said it plans to notify the U.S. Treasury of its intent to repurchase all 235,000 shares of the company's outstanding Series B Fixed Rate Cumulative Perpetual Preferred Stock and a warrant to purchase 708,116 common shares issued to the Treasury under its Capital Purchase Program.

The company said it will use net proceeds to repurchase the Series B stock and warrant and for general corporate purposes, including working capital and continued lending to clients through its banking subsidiary, Silicon Valley Bank.

The company said it will grant underwriters an option to buy up to 15 percent additional shares.

Shares of SVB Financial fell $3.76, or 8.8 percent, to $39.07 in after-hours trading following the announcement of the planned offering. During the regular session, they gained 63 cents, or 1.5 percent, to close at $42.83.