Silicon Valley Bancshares $135 million overnighter at 0% yield, up 31-37%

By Ronda Fears

Nashville, May 14 - Silicon Valley Bancshares launched $135 million of five-year 0% convertible subordinated notes talked with a 31% to 37% initial conversion premium in the overnight Rule 144A market, via lead manager Credit Suisse First Boston.

The issue will be noncallable, and there is a 110% contingent conversion feature.

There is a $15 million greenshoe available.

The company said it will use a portion of proceeds for the net cost of entering into convertible note hedge and warrant transactions to limit exposure to potential dilution from conversion of the notes.

Remaining proceeds will be used for stock repurchases and other general corporate purposes, which may include investments in, or extensions of credit to, its subsidiaries. Pending such uses, the company intends to invest proceeds in investment grade obligations and interest bearing money market instruments.

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