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Medallion Financial Corp. Announces Pricing of Initial Public Offering of Preferred Stock by Medallion Bank
NEW YORK--(BUSINESS WIRE)-- Medallion Financial Corp. (Nasdaq: MFIN, “Medallion Financial”) announced today that on December 10, 2019, its wholly owned
About this update from Medallion Financial Corp.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nMedallion Financial Corp. (Nasdaq: MFIN, “Medallion Financial”) announced today that on December 10, 2019, its wholly owned subsidiary, Medallion Bank, priced an initial public offering of 1,600,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share, with a liquidation amount of $25 per share (the “Series F Preferred Stock”) and an aggregate liquidation amount of $40 million.\n\n\nDividends will accrue on the liquidation amount of $25 per share of the Series F Preferred Stock at a rate per annum equal to (i) 8.00% from the original issue date of the Series F Preferred Stock to, but excluding, April 1, 2025, and (ii) a floating rate equal to a benchmark rate, which is expected to be three-month Term SOFR, plus 6.46% from, and including, April 1, 2025. Dividends will be payable in arrears on January 1, April 1, July 1 and October 1 of each year, commencing April 1, 2020. In each case, dividends will be paid only when, as and if declared by the board of directors of Medallion Bank (or a duly authorized committee of the board) and to the extent Medallion Bank has legally available funds to pay dividends.\n\n\nMedallion Bank’s Series F Preferred Stock is expected to trade on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The underwriters have also been granted a 30-day option to purchase up to an additional 240,000 shares of the Series F Preferred Stock solely to cover over-allotments, if any. Medallion Bank will remain a wholly owned subsidiary of Medallion Financial upon completion of the offering.\n\n\nMedallion Bank intends to use the net proceeds from this offering for general corporate purposes, which may include, among other things, increasing Medallion Bank’s capital levels, growing its consumer loan portfolios or redeeming some or all of its outstanding Senior Series E Non-Cumulative Perpetual Preferred Stock, subject to the prior approval of the Federal Deposit Insurance Corporation. The offering is expected to close on December 17, 2019, subject to customary closing conditions.\n\n\nSandler O’Neill + Partners, L.P., B. Riley FBR and Ladenburg Thalmann are acting as joint book-running managers. BB&T Capital Markets is acting as lead manager and Wedbush Securities is acting as co-manager.\n\n\nThe offering is being made ...