Medallion Financial announces pricing of Series G preferred stock offering

Medallion Bank has priced a public offering of 3,000,000 shares of its Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, par value $1.00 per share, with a liquidation amount of $25 per share and an aggregate liquidation amount of $75M. Dividends will accrue on the liquidation amount of $25 per share of the Series G Preferred Stock at a fixed rate per annum equal to 9.00% from the original issue date of the Series G Preferred Stock to, but excluding, July 1, 2030, and from and including July 1, 2030, at a rate equal to the five-year U.S. Treasury rate plus 4.94% per annum. Dividends will be payable in arrears on January 1, April 1, July 1 and October 1 of each year, commencing October 1, 2025. In each case, dividends will be paid only when, as and if declared by the board of directors of Medallion Bank and to the extent Medallion Bank has legally available funds to pay dividends. Medallion Bank’s Series G Preferred Stock is expected to trade on the Nasdaq Capital Market under the ticker symbol “MBNKO.” The underwriters have also been granted a 30-day option to purchase up to an additional 450,000 shares of the Series G Preferred Stock solely to cover over-allotments, if any. Medallion Bank will remain a wholly owned subsidiary of Medallion Financial (MFIN) upon completion of the offering. 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 Series F Non-Cumulative Perpetual Preferred Stock, subject to the prior approval of the Federal Deposit Insurance Corporation. The offering is expected to close on May 22, 2025, subject to customary closing conditions. Piper Sandler & Co. and Lucid Capital Markets are acting as joint book-running managers. A.G.P./Alliance Global Partners, B. Riley Securities, InspereX, Ladenburg Thalmann & Co., Muriel Siebert, Wedbush Securities, and William Blair & Company are acting as lead managers.