SVB Financial Group in Santa Clara, Calif., says it plans to raise $300 million in a sale of common stock and use most of the proceeds to repay all of its government-issued capital.
The $12.5 billion-asset parent of Silicon Valley Bank disclosed the offering plan Monday after the market closed.
SVB got $235 million in December from the Treasury Department through the Capital Purchase Program feature of its Troubled Asset Relief Program, or Tarp. In return, the company issued to the government preferred shares and a warrant for common stock, both of which it now intends to repurchase, pending approval by the Treasury and from SVB's banking regulators.
