Medallion Financial Corp. Completes de-BDC Process and Will Operate Going Forward as a Non-Investment Company
April 02 2018 - 8:00AM
Business Wire
Medallion Financial Corp. (Nasdaq: MFIN, “Medallion Financial”
or the “Company”) announced today that it has filed the Company’s
withdrawal form of its business development company (“BDC”)
election with the SEC and going forward will operate as a
non-investment company.
The Company believes functioning as a traditional operating
company will provide several significant benefits for Medallion and
its shareholders, including:
- The ability to harness Medallion Bank’s
long-term earnings power by being able to invest additional capital
to further grow the Company’s consumer portfolio;
- Simplification of financial statements
going forward through the consolidation of all non-investment
subsidiaries, including Medallion Bank;
- Increased transparency, as the Company
expects to report its entire operating results on one income
statement;
- Eligibility for inclusion as a
component in certain stock market indexes for the first time since
the indexes dropped BDCs from inclusion.
“With today’s filing, we are now able to streamline our
financial presentation and operations under Medallion Financial
Corp. and have truly become ‘One Medallion’,” stated Andrew
Murstein, President of Medallion Financial. “Importantly, from a
long-term strategic perspective, we will continue to execute on our
vision of creating value through our consumer lending and mezzanine
portfolios. We want to thank everyone for their hard work to bring
us to this point, as well as the ongoing support from both our
long-term and new shareholders.”
About Medallion Financial Corp.
Medallion Financial Corp. is a specialty finance company that
originates and services loans in various industries, and its
wholly-owned portfolio company, Medallion Bank, also originates and
services consumer loans. The Company and its subsidiaries have lent
approximately $7 billion to small businesses.
Please note that this press release contains forward-looking
statements that involve risks and uncertainties relating to
business performance, cash flow, costs, sales, net investment
income, earnings, and growth. Medallion Financial’s actual results
may differ significantly from the results discussed in such
forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those factors discussed
under the heading “Risk Factors,” in Medallion Financial’s 2017
Annual Report on Form 10-K.
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