Medallion Financial Corp. Announces Completion of Private Placement of $39.0 Million of Senior Notes
October 02 2023 - 6:00AM
Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the
“Company”), a specialty finance company that originates and
services loans in various consumer and commercial industries, along
with offering loan origination services to fintech strategic
partners, announced today that it has completed a private placement
of $39.0 million aggregate principal amount of senior unsecured
notes to certain institutional investors. The notes will mature on
September 30, 2028, and bear a fixed interest rate of 9.25% per
year, paid semi-annually. The notes received an investment grade
rating of A- by Egan-Jones.
The Company used a portion of the proceeds from
this offering to repurchase $33.0 million aggregate principal
amount of its existing 8.25% senior notes due 2024. The balance
will be used for general corporate purposes, which may include the
early repurchase or the repayment at maturity of the remaining $3.0
million principal amount of such existing notes, which mature in
March 2024.
“We are pleased to announce the closing of our
private placement as our businesses continue to perform well,”
stated Alvin Murstein, Chairman and CEO of Medallion. “This
financing reinforces our commitment to maintaining financial
flexibility and balance sheet strength.”
Piper Sandler & Co. served as sole placement
agent for the offering.
The offer and sale of the notes have not been
registered under the Securities Act of 1933, or any state
securities laws, and the notes may not be offered or sold in the
United States absent registration or an applicable exemption from,
or in a transaction not subject to, the registration requirements
of the Securities Act and applicable state laws.
This press release is for informational purposes
only and does not constitute an offer to sell or a solicitation of
an offer to buy the notes or any other securities of the Company,
nor shall there be any sale of the notes or any other securities of
the Company in any state or other jurisdiction in which, or to any
person to whom, such offer, solicitation or sale is unlawful.
About Medallion Financial Corp.
Medallion Financial Corp. (NASDAQ:MFIN) and its
subsidiaries originate and service a growing portfolio of consumer
loans and mezzanine loans in various industries. Key industries
served include recreation (towable RVs and marine) and home
improvement (replacement roofs, swimming pools, and windows).
Medallion Financial Corp. is headquartered in New York City, NY,
and its largest subsidiary, Medallion Bank, is headquartered in
Salt Lake City, Utah. For more information, please visit
www.medallion.com.
Forward-Looking
StatementsPlease note that this press release contains
forward-looking statements that involve risks and uncertainties
relating to business performance, cash flow, net interest income
and expenses, other expenses, earnings, growth, and our growth
strategy. These statements are often, but not always, made using
words or phrases such as “will” and “continue” or the negative
version of those words or other comparable words or phrases of a
future or forward-looking nature. These statements relate to future
public announcements of our earnings, the impact of the pending SEC
litigation, expectations regarding our loan portfolio, including
collections on our medallion loans, the potential for future asset
growth, and market share opportunities. Medallion’s actual results
may differ significantly from the results discussed in such
forward-looking statements. For example, statements about the
effects of the current economy, whether inflation or the risk of
recession, operations, financial performance and prospects
constitute forward-looking statements and are subject to the risk
that the actual impacts may differ, possibly materially, from what
is reflected in those forward-looking statements due to factors and
future developments that are uncertain, unpredictable and in many
cases beyond Medallion’s control. In addition to risks
relating to the current economy, for a description of certain risks
to which Medallion is or may be subject, including risks related to
the pending SEC litigation, please refer to the factors discussed
under the heading “Risk Factors” in Medallion’s 2022 Annual Report
on Form 10-K.
Company Contact:Investor
Relations212-328-2176InvestorRelations@medallion.com
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