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Medallion Financial Corp. Announces Completion of Amended and Restated Private Placement of $17.5 Million of Senior Notes
Includes $5.0 Million of Incremental Notes, Extends Maturity, and Lowers Interest Rate NEW YORK, June 25, 2024 (GLOBE NEWSWIRE) -- Medallion Financial Corp.
About this update from Medallion Financial Corp.
[{"type":"text","content":"Includes $5.0 Million of Incremental Notes, Extends Maturity, and Lowers Interest Rate\nNEW YORK, June 25, 2024 (GLOBE NEWSWIRE) -- 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 $17.5 million aggregate principal amount of senior unsecured notes to a certain institutional investor, by amending and restating its existing 9.00% senior notes due 2033. The notes now mature on June 30, 2039, and bear a fixed interest rate of 8.875% per year, paid semi-annually commencing June 30, 2024. The notes received an investment grade rating of A- by Egan-Jones. As disclosed via a Current Report on Form 8-K filed on December 28, 2023, the Company initially completed a private placement of $12.5 million aggregate principal amount of senior unsecured notes to a certain institutional investor. At that time, the notes were to mature on December 30, 2033, and bear a fixed interest rate of 9.00% per year, paid semi-annually, with the initial payment expected on June 30, 2024. On June 24, 2024, the Company completed a private placement amending and restating such 9.00% senior notes due 2033 with the same institutional investor. The primary changes were to increase the principal amount from $12.5 million to $17.5 million, or an increase of $5.0 million, extend the maturity date from December 30, 2033 to June 30, 2039, and decrease the fixed interest rate from 9.00% to 8.875%. The net proceeds will be used for general corporate purposes. “We are pleased with the closing of our expanded private placement with an investment grade rating, which is another strong sign of the quality of our assets. We continue to build on the strength of our Company, improved balance sheet, and flexibility of our capital structure,” stated Andrew Murstein, President and COO of Medallion. “We achieved our three primary objectives – we increased the amount, extended the term, and lowered the rate. That is a great combination and will help us continue to deliver long-term shareholder value.” About Medallion Financial Corp. Medallion Financial Corp. (NASDAQ:MFIN) and its subsidiaries originate and service a gro...