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Medallion Financial Corp. Announces Completion of Private Placement of $39.0 Million of Senior Notes
NEW YORK, Oct. 02, 2023 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that
About this update from Medallion Financial Corp.
[{"type":"text","content":"NEW YORK, Oct. 02, 2023 (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 $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) an...