Medallion Bank completes $55 million preferred-share offering

Medallion Bank ($MFIN), a wholly owned subsidiary of Medallion Financial, closed an offering of 2.2 million Series G preferred shares with a $25 liquidation preference, representing $55 million of aggregate preference value. The securities are fixed-rate-reset, non-cumulative and perpetual. Underwriters also have a 30-day option for up to 330,000 additional shares; that potential issuance is separate from the completed offering.

The bank intends to use net proceeds for general corporate purposes, potentially including redemption of its Series E preferred stock, which requires prior FDIC approval. The transaction adds financing flexibility at the banking subsidiary, although offering expenses mean gross size is not the same as net cash received. Preferred dividends create an ongoing financing cost, and the securities are not insured deposits. The newly confirmed closing is distinct from the earlier pricing announcement.

Sources:

• Medallion Bank release via GlobeNewswire