SVB Financial Group begins Chapter 11 of Preserving Value

SVB Securities and SVB Capital’s funds and partner public entities not included in the Chapter 11 filing are not included.

The process of strategic alternatives to SVB Capital and SVB securities operations is underway with great interest

Santa Clara, California.And March 17, 2023 /PRNewswire/ – SVB Financial Group (the “Company”) (NASDAQ: SIVB) today that it has filed a voluntary petition for court-supervised reorganization under Chapter 11 in United State Southern District Bankruptcy Court New York to maintain value.

SVB Securities funds and SVB Capital and general partner entities are not included in the Chapter 11 filing and continue to operate in the normal course as SVB Financial Group continues to explore its previously announced strategic alternatives to these valuable companies.

• SVB Capital, a platform for venture capital and private equity funds deeply rooted in the innovation economy, continues to operate in the normal course and serve its clients. SVB Capital funds and general partners are separate legal entities, distinct from the SVB financial group, and are not included in a Chapter 11 filing. SVB Capital funds continue to have access to funding sources, including subscription credit facilities and commitments to investors and general partners. SVB Financial Group is committed to supporting SVB Capital throughout the reorganization process.
• SVB Securities Inc. is a regulated broker-dealer with its management, employees and capital, which is a separate legal entity from SVB Financial Group and is not included in the Chapter 11 filing. It continues to operate in the normal course. SVB Financial Group, which owns SVB Securities shares, is committed to providing SVB Securities support throughout the reorganization process.
• SVB Financial Group is no longer affiliated with Silicon Valley Bank, NA, or the bank’s private banking and wealth management business, SVB Private. The bank’s successor, Silicon Valley Bridge Bank, NA, operates under the jurisdiction of the Federal Deposit Insurance Corporation (“FDIC”) and is not included in a Chapter 11 filing.

The company believes it has approx $2.2 billion Liquidity. In addition to cash and its interests in SVB Capital and SVB Securities, SVB Financial Group holds other valuable investment securities accounts and other assets for which it is also exploring strategic alternatives.

The debt funded by SVB Financial Group is approx 3.3 billion dollars in the total principal amount of the unsecured notes, which is only referenceable to SVB Financial Group and has no claim against SVB Capital or SVB Securities. SVB Financial Group also has it $3.7 billion of preferred stock 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 restructuring committee composed of five members appointed by the SVB Financial Group Board of Directors. Centerview Partners LLC is assisting the Restructuring Committee in the Strategic Replacements process, which is already underway and has attracted significant interest. Any sale will be conducted through Chapter 11 procedures and subject to court approval.

“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its businesses and valuable assets, particularly SVB Capital and SVB Securities,” William Costoros, Head of Restructuring of SVB Financial Group. “SVB Capital and SVB Securities continue to operate and serve clients, led by longstanding and independent leadership teams.”

“SVB Financial Group will continue to work collaboratively with Silicon Valley Bridge Bank,” Mr. Costoros continued. “We are committed to finding practical solutions to maximize recoverable value for the stakeholders of both entities.”

SVB Financial Group plans to file normal day one applications with the Bankruptcy Court seeking, among other things, permission to continue operations of SVB Financial Group in the ordinary course of business once a hearing date has been set. Additional documents related to the bankruptcy court proceedings will be submitted in the coming days.

Centerview Partners LLC is proposed financial advisor, Sullivan & Cromwell LLP is proposed legal advisor and Alvarez & Marsal is 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 can generally be identified by the use of words such as “become,” “may,” “will,” “should,” “could,” “would,” “anticipate,” “possibility,” “continue.” , “anticipate,” “believe,” “estimate,” “seek,” “anticipate,” “plan,” “intend,” the negative of these or similar words. 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 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 SVB Financial Group’s control. Forward-looking statements regarding SVB Financial Group’s performances, actual results of operations and financial performance may differ materially from those contained in or implied by SVB Financial Group’s 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 to update these forward-looking statements and does not undertake any obligation.

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SOURCE SVB Financial Group