Medallion Bank Prices Public Offering of Series G Preferred Stock

Strategic Insights -

Medallion Bank, an FDIC-insured bank specializing in consumer loans for recreational vehicles, boats, and home improvements, has announced the pricing of 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 and an aggregate liquidation amount of $75 million. The bank will use the net proceeds from this offering for general corporate purposes, which may include increasing its capital levels, growing its consumer loan portfolios, or redeeming some or all of its outstanding Series F Non-Cumulative Perpetual Preferred Stock.

Key Takeaways:

  • The offering consists of 3,000,000 shares of Series G Preferred Stock with a liquidation amount of $25 per share and an aggregate liquidation amount of $75 million.
  • Dividends will accrue at a fixed rate of 9.00% per annum from the original issue date to July 1, 2030, and at a rate equal to the five-year U.S. Treasury rate plus 4.94% per annum thereafter.
  • Dividends will be payable in arrears on January 1, April 1, July 1, and October 1 of each year, commencing October 1, 2025.
  • The Series G Preferred Stock is expected to trade on the Nasdaq Capital Market under the ticker symbol MBNKO.
  • The underwriters have been granted an option to purchase up to an additional 450,000 shares of the Series G Preferred Stock to cover over-allotments.
  • Medallion Bank will remain a wholly owned subsidiary of Medallion Financial Corp. upon completion of the offering.

Statistics:

  • $75 million - Aggregate liquidation amount of the Series G Preferred Stock offering.
  • 3,000,000 - Number of shares of Series G Preferred Stock being offered.
  • 450,000 - Maximum number of additional shares that the underwriters can purchase to cover over-allotments.
  • 9.00% - Fixed rate of dividends for the first ten years.
  • 4.94% - Additional rate of dividends to be added to the five-year U.S. Treasury rate starting from July 1, 2030.
  • January 1, April 1, July 1, and October 1 - Payroll dates for dividend payments.
  • October 1, 2025 - Start date for dividend payments.
  • May 22, 2025 - Expected closing date for the offering.
  • $25 - Liquidation amount per share of Series G Preferred Stock.

Sources:

  • (GlobeNewswire) - Medallion Bank (Nasdaq: MBKNP) press release announcing the pricing of a public offering of Series G Preferred Stock.
  • Medallion Bank's Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.