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Medallion Financial Increases Size of Notes Offering to $30 Million

April 14, 2016, 07:45 AM
Filed Under: Industry News

Medallion Financial Corp, a specialty finance company that originates and services loans in various niche industries, announced it has increased the size of its previously announced offering of 9.00% Notes due 2021 (the “Notes”) to $30 million in aggregate principal amount as a result of increased demand for the Notes. Keefe, Bruyette & Woods, A Stifel Company, and Sandler O’Neill & Partners, L.P. are acting as joint bookrunning managers in this offering.

The Company has also granted the underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following closing of the offering, to purchase up to an additional $4.5 million in aggregate principal amount of Notes.

The Notes will mature on April 15, 2021. Interest will accrue from April 15, 2016 and will be payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year, beginning on July 15, 2016.

The Notes will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes, including the Company’s Fixed/Floating Rate Junior Subordinated Notes issued on June 7, 2007; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries.

The Company may not redeem the Notes prior to April 15, 2020 (twelve months before maturity). The Company may redeem for cash all or any portion of the Notes, at its option, on or after April 15, 2020 at a redemption price equal to the greater of 100% of the principal amount of the Notes being redeemed and the discounted present value of such Notes, discounted at the corresponding U.S. Treasury rate plus 50 basis points, plus accrued and unpaid interest to, but excluding, the redemption date.

The Company intends to apply to list the Notes on The NASDAQ Global Select Market and expects trading to commence thereon within 30 days of the first original issue date of the Notes under the symbol “TAXIL.”

The Company expects to use the net proceeds from the offering to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under its revolving credit facilities in the ordinary course of business and expanding its operations.

Medallion Financial Corp. is a specialty finance company that originates and services loans in various commercial 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.

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