SVB Financial plans to price $200 million of three-year convertibles

By Rebecca Melvin

New York, March 31 - SVB Financial Group plans to price $200 million of three-year convertible senior notes to be sold via Rule 144A, according to a company release.

There is a greenshoe for up to $50 million.

No further information about terms or timing was available at press time.

The Santa Clara, Calif.-based financial company expects to enter into convertible note hedge transactions and intends to use some proceeds to pay for the convertible note hedge transactions, with the cost partly offset by warrant transactions.

SVB expects to use most proceeds, or about $150 million, to cash settle its conversion obligation due upon conversion of its 0% convertible subordinated notes due on June 15, 2008.

Any remaining net proceeds will be for general corporate purposes.

SVB plans to use any proceeds from the exercise of the over-allotment option to enter into additional convertible note hedge transactions and for general corporate purposes.

SVB is a financial holding company that serves emerging growth and mature companies in the technology, life science, private equity and premium wine industries.

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