VersaBank $75 million subordinated notes offering
We advised VersaBank on the Rule 144A offering
5/3/2021

Davis Polk advised VersaBank, a Schedule I Canadian bank, in a Rule 144A offering of $75 million aggregate principal amount of its 5.00% fixed to floating rate subordinated notes due 2031 (non-viability contingent capital). The proceeds of the notes offering will be used for general corporate purposes.

VersaBank became one of the world’s first fully digital financial institutions when it adopted its highly efficient business-to-business model using its proprietary state-of-the-art financial technology to profitably address underserved segments of the Canadian banking market in the pursuit of attractive net interest margins while mitigating risk. VersaBank obtains all of its deposits and provides the majority of its loans and leases electronically, with innovative deposit and lending solutions for financial intermediaries that allow them to excel in their core businesses. In addition, leveraging its internally-developed IT security software and capabilities, VersaBank established its wholly-owned, Washington, DC-based subsidiary, DRT Cyber Inc. to pursue significant large-market opportunities in cybersecurity and develop innovative solutions to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities on a daily basis.

The Davis Polk corporate team included partners Nicholas A. Kronfeld and Shane Tintle and counsel Andrew B. Samuel. The executive compensation team included counsel Charles Shi. The intellectual property team included associate Jesse L. Hallock. The investment management team included counsel Sarah E. Kim. The tax team included partner Mario J. Verdolini and associate Shay Moyal. All members of the Davis Polk team are based in the New York office.