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Silicon Valley Bank parent to raise $393.9M to finance growth bag of money

May 15, 2014

ENP Newswire - 15 May 2014

Release date- 14052014 - The tech economy is roaring and Silicon Valley Bank is raising money to expand.

Silicon Valley Bank's parent company plans to sell stock to raise $393.9 million that will finance its global lending business and other operations.

SVB Financial Group will offer 3.9 million shares of common stock at $101 per share, the company said in a news release. The company will also grant underwriters of the registered public offering an additional 585,000 shares to cover over-allotments.

J.P. Morgan and BofA Merrill Lynch will be joint book-running managers for the offering. Keefe, Bruyette & Woods, A Stifel Co., RBC Capital Markets and Sandler O'Neill + Partners will act as co-managers.

The offering is expected to close May 19, the company said.

The capital raise is intended to help Silicon Valley Bank, the region's third-largest bank, compete regionally and globally for business as the technology economy mushrooms, CEO Greg Becker said in an emailed statement.

'We see significant opportunities for growth in the U.S. markets and globally,' Becker said. 'We recognize we face a number of macro challenges, including the low-rate environment, the increasing cost and complexity of being a regulated company, fierce competition for the best clients, and a still recovering economy. But these are challenges that every bank is dealing with and we continue to deliver strong performance despite them.'

The company has been investing to enhance its offerings, introducing mobile banking and new card and payment products in the past two years. SVB relaunched its private bank and introduced a wealth management service, opened a branch in the U.K. and opened a joint venture bank in China.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: ENP Newswire

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