SVB Securities and SVB Capital's Funds and
General Partner Entities NOT Included in Chapter 11 Filing
Strategic Alternatives Process for SVB Capital
and SVB Securities Operations Underway with Significant
Interest
SANTA
CLARA, Calif., March 17,
2023 /PRNewswire/ -- SVB Financial Group ("the
Company") (NASDAQ: SIVB) today announced that it has filed a
voluntary petition for a court-supervised reorganization under
Chapter 11 in the United States
Bankruptcy Court for the Southern District of New York to preserve value.
SVB Securities and SVB Capital's funds and general partner
entities are not included in the Chapter 11 filing and continue to
operate in the ordinary course as SVB Financial Group proceeds with
its previously announced exploration of 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 operate in
the ordinary course and serve its clients. The SVB Capital funds
and general partners are separate legal entities, distinct from SVB
Financial Group, and are not included in the Chapter 11 filing. SVB
Capital funds continue to have access to sources of funding,
including subscription credit facilities and investor and general
partner commitments. SVB Financial Group is committed to providing
SVB Capital with support throughout the reorganization process.
- SVB Securities, a regulated broker-dealer with its own
management, employees and capital, is a separate legal entity from
SVB Financial Group and is not included in the Chapter 11 filing.
It continues to operate in the ordinary course. SVB Financial
Group, which owns the equity of SVB Securities, is committed to
providing SVB Securities with support throughout the reorganization
process.
- SVB Financial Group is no longer affiliated with Silicon Valley
Bank, N.A., or the bank's private banking and wealth management
business, SVB Private. The bank's successor, Silicon Valley Bridge
Bank, N.A., is operating under the jurisdiction of the Federal
Deposit Insurance Corporation ("FDIC") and is not included in the
Chapter 11 filing.
The Company believes it has approximately $2.2 billion of liquidity. In addition to cash
and its interests in SVB Capital and SVB Securities, SVB Financial
Group has other valuable investment securities accounts and other
assets for which it is also exploring strategic alternatives.
SVB Financial Group's funded debt is approximately $3.3 billion in aggregate principal amount of
unsecured notes, which are only recourse to SVB Financial Group and
have no claim against SVB Capital or SVB Securities. SVB Financial
Group also has $3.7 billion of
preferred equity outstanding.
SVB Financial Group intends to use the court-supervised process
to evaluate strategic alternatives for SVB Capital, SVB Securities
and the Company's other assets and investments. As previously
announced, this process is being led by a five-member restructuring
committee appointed by the SVB Financial Group Board of Directors.
Centerview Partners LLC is assisting the restructuring committee
with the strategic alternatives process, which is already underway
and has attracted significant interest. Any sale process will be
conducted through the Chapter 11 proceeding and be subject to court
approval.
"The Chapter 11 process will allow SVB Financial Group to
preserve value as it evaluates strategic alternatives for its
prized businesses and assets, especially SVB Capital and SVB
Securities," said William Kosturos,
Chief Restructuring Officer for SVB Financial Group. "SVB Capital
and SVB Securities continue to operate and serve clients, led by
their longstanding and independent leadership teams."
"SVB Financial Group will continue to work cooperatively with
Silicon Valley Bridge Bank," Mr. Kosturos continued. "We are
committed to finding practical solutions to maximize the
recoverable value for stakeholders of both entities."
SVB Financial Group plans to file customary first day motions
with the Bankruptcy Court that, among other things, seek
authorization to continue the operations of SVB Financial Group in
the ordinary course of business as soon as a hearing can be
scheduled. Additional documents relating to the Bankruptcy Court
proceeding will be filed in the coming days.
Centerview Partners LLC is proposed financial advisor, Sullivan
& Cromwell LLP proposed legal counsel and Alvarez & Marsal
proposed restructuring advisor to SVB Financial Group as
debtor-in-possession.
About SVB Financial Group
SVB Financial Group (Nasdaq: SIVB) is the holding company for
SVB Capital and SVB Securities.
Forward Looking Statements
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 SVB Financial
Group's control. Forward-looking statements are statements that are
not historical facts and generally can be identified by the use of
such words as "becoming," "may," "will," "should," "could,"
"would," "predict," "potential," "continue," "anticipate,"
"believe," "estimate," "seek," "expect," "plan," "intend," the
negative of such words or comparable terminology. Although SVB
Financial Group believes that the expectations reflected in SVB
Financial Group's forward-looking statements are reasonable, SVB
Financial Group has based these expectations on its current beliefs
as well as its assumptions, and such expectations may not prove to
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 outside SVB Financial Group's control. Forward-looking
statements related to the offerings and SVB Financial Group's
actual results of operations and financial performance could differ
significantly from those expressed in or implied by SVB Financial
Group forward-looking statements. The 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.
Media Contact
Media Only:
Joele Frank, Wilkinson Brimmer
Katcher
Michael Freitag / Jed Repko / Aaron
Palash
212-355-4449
svbmediainquiry@joelefrank.com
Investor Contact
Investors Only:
ir@svb.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/svb-financial-group-commences-chapter-11-proceeding-to-preserve-value-301774997.html
SOURCE SVB Financial Group