Molten Ventures PLC (LSE:GROW) has said its financing facilities will be available following the sale of collapsed Silicon Valley Bank’s (SVB) UK arm to HSBC.
SVB UK provided the venture capital firm with a revolving credit facility of up to £60mln and a £90mln term loan, the company said in a statement. JP Morgan provides 60% of the London-listed company's debt facilities, while SVB UK provides 40%.
After the SVB UK acquisition by HSBC, the group now has a “strong cash position” with gross cash balances of more than £30mln, of which less than £1mln is deposited with SVB UK.
Molten said it does not anticipate any meaningful liquidity impact from the failure of SVB on its portfolio companies.
“The great majority of Molten’s core companies were already well diversified in terms of banking relationships and counterparty risk,” it noted.
Molten said it has worked closely with its portfolio companies to further improve the position over recent days.
SVB collapsed over the weekend after facing billions in unrealised losses as a result of US Treasury bonds it held on its balance sheet.
HSBC yesterday confirmed it agreed to bail out the UK arm of SVB for a nominal payment of £1.