SVB Securities and SVB Capital’s funds and general partner companies have not filed Chapter 11
The strategic transition processes for the SVB Capital and SVB Securities operations are proceeding with considerable enthusiasm
Santa Clara, California., March 17, 2023 /PRNewswire/ — SVB Financial Group (the “Company”) (NASDAQ: SIVB) announced today that it has filed a voluntary petition for court-supervised reorganization under Chapter 11 of United Nations Southern District Bankruptcy Court New York To preserve value.
SVB Securities and SVB Capital’s funds and general partner companies have not filed for Chapter 11 and continue to operate on a normal course as SVB Financial Group has previously announced strategic alternatives for these valuable businesses.
- SVB Capital, a venture capital and private credit fund platform with deep roots in the innovation economy, continues to serve its clients in a normal course. SVB Capital Funds and General Partners are separate legal entities that are separate from SVB Fund Group and have not filed Chapter 11. SVB Capital Funds continue to have access to funding sources including subscription credit facilities and investor and general shareholder commitments. SVB Finance Group is committed to providing SVB Capital with support throughout the restructuring process.
- SVB Securities, a regulated broker-dealer with its own management, personnel and capital, is a separate legal entity from SVB Financial Group and has not filed for Chapter 11. It continues to function normally. SVB Financial Group, which holds the equity of SVB Securities, is committed to support SVB Securities throughout the restructuring process.
- SVB Financial Group is no longer affiliated with Silicon Valley Bank, NA or the bank’s private banking and wealth management business, SVB Pvt. The Bank’s successor, Silicon Valley Bridge Bank, NA, operates under the jurisdiction of the Federal Deposit Insurance Corporation (“FDIC”) and has not filed for Chapter 11.
The Company believes that there are approx $2.2 billion Liquidity. In addition to cash and its interests in SVB Capital and SVB Securities, SVB Financial Group also holds other valuable investment securities accounts and other assets.
SVB Financial Group’s funded debt is approx $3.3 billion The aggregate principal amount of the unsecured notes is solely attributable to SVB Financial Group and has no claim against SVB Capital or SVB Securities. There is also SVB Financial Group $3.7 billion Preferred stock outstanding.
SVB Financial Group intends to use the court supervision process to evaluate strategic alternatives for SVB Capital, SVB Securities and the Company’s other assets and investments. As previously announced, the process is led by a five-member restructuring committee appointed by the board of directors of SVB Financial Group. Centerview Partners LLC is assisting the restructuring team with the strategic transition process, which is already underway and has attracted significant interest. Any sale process would be conducted through a Chapter 11 process and would be subject to court approval.
“The Chapter 11 process will allow SVB Financial Group to preserve value for its valuable businesses and assets, particularly SVB Capital and SVB Securities, as it evaluates strategic alternatives,” he said. William Costuros, Chief Restructuring Officer of SVB Financial Group. “SVP Capital and SVP Securities continue to serve clients under the leadership of their long-standing and independent leadership teams.”
“SVB Financial Group will continue to cooperate with Silicon Valley Bridge Bank,” Mr. Costuros continued. “We are committed to finding practical solutions to maximize recoverable value for both companies’ shareholders.”
SVB Financial Group plans to file routine first-day claims in bankruptcy court. Additional documents related to the bankruptcy court proceeding will be filed in the coming days.
Centerview Partners LLC was the proposed financial advisor, Sullivan & Cromwell LLP was the proposed legal advisor and Alvarez & Marcel SVB Financial Group was the proposed restructuring advisor to the debtor.
About SVB Financial Group
SVB Financial Group (NASDAQ: SIVB) is the holding company for SVB Capital and SVB Securities.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the control of SVB Financial Group. Forward-looking statements are statements that are not historical facts and are generally identified by the use of words such as “will,” “may,” “will,” “should,” “could,” “will,” “predict,” “potential,” “continue, ” “anticipate,” “believe,” “estimate,” “seek,” “anticipate,” “plan,” “intend,” negative or comparable terms. Although SVB Financial Group believes that the expectations reflected in SVB Financial Group’s forward-looking statements are reasonable, SVB Financial Group bases these expectations on its current beliefs and its assumptions, and such expectations may not be correct. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are beyond the control of the SVB Financial Group. Forward-looking statements regarding offers and SVB Financial Group’s actual results of operations and financial performance may differ materially from those expressed or implied in SVB Financial Group’s forward-looking statements. Forward-looking statements included in this disclosure are made only as of the date of this disclosure. SVB Financial Group does not intend and undertakes no obligation to update these forward-looking statements.
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Source SVB Financial Group