Silvergate Capital Prices New Preferred Issue

Silvergate Capital (SI) has priced their previously announced new issue of preferred stock.

The company priced 8 million $25/share preferred stock with a coupon of 5.375%.

The issue is non-cumulative and qualified. The issue carries a junk rating from Moody’s of Ba3.

The issue trades immediately under OTC grey market ticker SIVCV (watch for ticker changes by the OTC).

The pricing term sheet is here.

12 thoughts on “Silvergate Capital Prices New Preferred Issue”

  1. SIVCV not getting much love. Picked up a bit at 24.50. It will be interesting to see where it finds a foothold.

    1. Same here, small position at $24.60. So far this has seen ample supply: yesterday it traded over 2 mill shrs, today volume is 745K. As long as supply over runs demand this will have a hard time lifting off. When a duck quacks someone is there to feed it.

    2. I told myself I was not going to buy but at 24.38 I will take a couple hundred to put in the higher risk bucket to juice divs a tiny bit. They make money and I will just have to keep an eye on it.

  2. I am going to pass on this one. Guess I am a little old fashioned as this one doesn’t meet any of my criteria that the product isn’t produced from something grown or dug out of the ground, an intellectual product like software, or debt for companies to expand in a business I understand…. think the last one fits this one the best!

  3. Picked up a bunch at $24.90

    It will be interesting to see how it does. BPYPM is trading lower today so these new issues aren’t exactly rocketing out of the gate like they have been for a while.

    1. I bought a minuscule amount of SIVCV and TD Ameritrade charged me a Foreign Security Fee. Has anyone else been charged this fee?

      1. Wasn’t charged anything at Fidelity.

        But to make up for it Fidelity has been flaky in getting new issues to show up properly in people’s accounts lately.

      2. They charge 6.95 for Pink (BB) stocks which is where new preferreds trade before going OTC.

  4. The V at the end of the ticker symbol designates “when issued”. After issuance, the V typically changes to P. Subsequently, the permanent ticker symbol is adopted. Is that correct?

    Probably a mistake, but I declined to flip this based on risk/reward considerations.

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