Medallion Financial Corp. Announces Launch of Initial Public Offering of Preferred Stock by Medallion Bank
January 08 2019 - 9:05AM
Business Wire
Medallion Financial Corp. (Nasdaq: MFIN, “Medallion Financial”)
announced today that its wholly owned subsidiary, Medallion Bank,
has launched an initial public offering of shares of its Series F
Fixed-to-Floating Rate Noncumulative Perpetual Preferred Stock, par
value $1.00 per share, with a liquidation preference of $25 per
share (the “Series F Preferred Stock”). Medallion Bank’s Series F
Preferred Stock is expected to trade on the Nasdaq Capital Market
under the ticker symbol “MBNKP.” Medallion Bank will remain a
wholly owned subsidiary of Medallion Financial upon completion of
the offering.
Medallion Bank expects to grant the underwriters a 30-day option
to purchase additional shares of the Series F Preferred Stock
solely to cover over-allotments, if any.
Medallion 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.
Sandler O’Neill + Partners, L.P. is acting as book-running
manager. B. Riley FBR, Northland Capital Markets, Incapital LLC,
Wedbush PacGrow and American Capital Partners, LLC are acting as
co-managers.
The offering will be made only by means of an offering circular.
A registration statement on Form 10 relating to the securities has
been filed with the Federal Deposit Insurance Corporation but has
not yet become effective. This press release is for informational
purposes only and does not constitute an offer to sell or the
solicitation of an offer to buy securities, and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of that
jurisdiction. The securities are neither insured nor approved by
the Federal Deposit Insurance Corporation or the Utah Department of
Financial Institutions.
The preliminary offering circular relating to the offering and
the registration statement on Form 10 are available at
medallionbankoffering.com. In addition, copies of the preliminary
offering circular may also be obtained from: Sandler O’Neill +
Partners, L.P.; Attn: Syndicate, 1251 Avenue of the Americas, 6th
Floor, New York, New York 10020, by phone at (866) 805-4128 or by
email at syndicate@sandleroneill.com.
About Medallion Financial and Medallion Bank
Medallion Financial Corp. is a finance company that originates
and services loans in various industries. Medallion Financial Corp.
has lent more than $8 billion since its initial public offering in
1996.
Medallion Bank is a Utah-chartered, FDIC-insured industrial bank
headquartered in Salt Lake City, Utah. Medallion Bank specializes
in providing consumer loans for the purchase of recreational
vehicles, boats and trailers and for home improvements such as
replacement windows and roofs.
This press release contains “forward-looking statements”, which
reflect Medallion Financial’s current views with respect to future
events and which address matters that are, by their nature,
inherently uncertain and beyond Medallion Financial’s control.
These statements are often, but not always, made through the use of
words or phrases such as “expect” and “intend” or the negative
version of those words or other comparable words or phrases of a
future or forward-looking nature. These statements relate to the
offering of shares of the Series F Preferred Stock, the anticipated
use of the net proceeds by Medallion Bank and the grant to the
underwriters of an option to purchase additional shares of the
Series F Preferred Stock. No assurance can be given that the
transaction discussed above will be completed on the terms
described, or at all. Completion of the offering on the terms
described, including the grant of the option to the underwriters,
and the application of net proceeds, are subject to numerous
conditions, many of which are beyond the control of Medallion
Financial. Medallion Financial undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law. For a description of certain risks to which
Medallion Financial is or may be subject, please refer to the
factors discussed under the heading “Risk Factors,” in Medallion
Financial’s 2017 Annual Report on Form 10-K. For a description of
certain risks to which Medallion Bank is or may be subject, please
refer to the factors discussed under the captions “Cautionary Note
Regarding Forward-Looking Statements” and “Risk Factors” included
in the preliminary offering circular attached as Exhibit 99.1 to
Medallion Bank’s Form 10 filed with the Federal Deposit Insurance
Corporation.
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version on businesswire.com: https://www.businesswire.com/news/home/20190108005605/en/
Company Contact:Alex
ArzenoInvestor
Relations212-328-2176InvestorRelations@medallion.com
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