SVB Financial Group Prices New Preferred

SVB Financial Group (SIVB) has priced the previously announced new preferred stock offering.

The issue priced at 5.25% and will be non-cumulative, but qualified.

The issue is split investment grade with Moodys rating the issue Baa2 and S&P being at BB.

The issue will trade today under OTC Grey market ticker SIVBL.

The pricing term sheet can be seen here.

SteveA was right on the pricing under yesterdays announcement article.

5 thoughts on “SVB Financial Group Prices New Preferred”

  1. Baa2 and BB is quite the difference in opinion. While only three notches, the leap over the IG barrier makes it quite the difference. Anyone understand what modeling differences result in such disparate ratings?

  2. I like it. In at $24.95. Under par ytc close to 5.3%, not bad these days for a split IG with a quality “parent.” The way things are going, who know, may flip it in a few weeks for a few percentage point gains, but locked in a 5.3% yield for 5 years is a pickup i’m happy with.

  3. Pass, I am only interested in coupon’s 5.5% or above in the US markets. In Canada, I will take a yield of 5.3% or better since they often trade under PAR.

    Time for bonds to reverse course today and pullback.

    As Sonny & Cher sang “The beat goes on”. I saw Cher in concert last year, she can still sing.

    1. Martin,
      I’m holding AFINP, AHH-A, BFS-E, BRG-A, CORR-A, LXP-C, MFA-B, RLJ-A, SOHON, STAG-G, VER-F, etc…

      Happy hunting…

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