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Medallion Bank Announces Public Offering of $75 Million Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock

Strategic Insights

— 1 min read

Medallion Bank, a Utah-chartered, FDIC-insured industrial bank, has priced a public offering of 3,000,000 shares of its Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, with a liquidation amount of $25 per share. The offering is expected to close on May 22, 2025, subject to customary closing conditions, with net proceeds to be used for general corporate purposes, including increasing capital levels, growing consumer loan portfolios, or redeeming outstanding Series F Non-Cumulative Perpetual Preferred Stock.

Key Takeaways:

  • The public offering of Medallion Bank's Series G Preferred Stock will raise $75 million in gross proceeds, with 3,000,000 shares issued at a liquidation amount of $25 per share.
  • The Series G Preferred Stock will trade on the Nasdaq Capital Market under the ticker symbol "MBNKO."
  • The offering is being conducted by Piper Sandler & Co. and Lucid Capital Markets, LLC as joint book-running managers, with other firms serving as lead managers.
  • The net proceeds from the offering may be used for various corporate purposes, including increasing capital levels, growing consumer loan portfolios, or redeeming outstanding Series F Preferred Stock.
  • The redemption of Series F Preferred Stock is subject to the prior approval of the Federal Deposit Insurance Corporation.
  • The Series G Preferred Stock will accrue dividends at a fixed rate of 9.00% per annum through July 1, 2030, and at a rate equal to the five-year U.S. Treasury rate plus 4.94% per annum thereafter.

Statistics:

  • The public offering of Medallion Bank's Series G Preferred Stock will raise $75 million in gross proceeds.
  • The Aggregate liquidation amount of Series G Preferred Stock is $75 million.
  • The Series G Preferred Stock will trade on the Nasdaq Capital Market under the ticker symbol "MBNKO."
  • The offering is expected to close on May 22, 2025, subject to customary closing conditions.
  • The Series G Preferred Stock will accrue dividends at a fixed rate of 9.00% per annum through July 1, 2030, and at a rate equal to the five-year U.S. Treasury rate plus 4.94% per annum thereafter.

Sources:

  • Medallion Bank press release dated May 16, 2025
  • GlobeNewswire
  • Nasdaq
  • Federal Deposit Insurance Corporation (FDIC)

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