Medallion Bank closed a public offering of 3.1 million shares of Series G Preferred Stock, raising $77.5 million.
Quiver AI Summary
Medallion Bank announced the successful completion of a public offering of 3,100,000 shares of its Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, raising approximately $77.5 million. The offering was priced on May 15, 2025, and shares began trading on the Nasdaq under the ticker "MBNKO" on May 22, 2025. As a wholly-owned subsidiary of Medallion Financial, the bank plans to use the proceeds for general corporate purposes, which may include enhancing capital levels or redeeming its Series F Preferred Stock, subject to regulatory approval. The offering was conducted under an exemption from the Securities Act of 1933 and is not insured by the FDIC.
Potential Positives
- Medallion Bank successfully closed a public offering of 3,100,000 shares of its Series G Preferred Stock, raising an aggregate of $77.5 million.
- The Series G Preferred Stock commenced trading on the Nasdaq Capital Market under the ticker symbol “MBNKO,” enhancing visibility and accessibility for investors.
- The proceeds from the offering may support the growth of Medallion Bank’s consumer loan portfolios and potentially strengthen its capital levels.
- Medallion Bank remains a wholly owned subsidiary of Medallion Financial, indicating continued support and stability from its parent company.
Potential Negatives
- The offering of Series G Preferred Stock is a potential signal of financial distress or a need for capital, as companies typically issue preferred stock to raise funds under challenging conditions.
- The securities are explicitly stated to be neither insured nor approved by the Federal Deposit Insurance Corporation (FDIC) or any other regulatory body, which may raise concerns among investors about the safety of their investment.
- The announcement includes a significant number of forward-looking statements, which carry inherent risk and uncertainty, potentially diminishing investor confidence in the company's future plans.
FAQ
What is Medallion Bank's Series G Preferred Stock?
Medallion Bank's Series G Preferred Stock is a fixed-rate, non-cumulative perpetual preferred stock with a par value of $1.00.
How many shares of Series G Preferred Stock have been offered?
A total of 3,100,000 shares of Series G Preferred Stock were offered, raising an aggregate amount of $77.5 million.
When did the Series G Preferred Stock commence trading?
The Series G Preferred Stock began trading on the Nasdaq Capital Market under the ticker symbol “MBNKO” on May 22, 2025.
What are the intended uses of the proceeds from the offering?
Medallion Bank intends to use the net proceeds for general corporate purposes, including increasing capital levels and growing consumer loan portfolios.
Who acted as managers for the Series G Preferred Stock offering?
Piper Sandler & Co. and Lucid Capital Markets, LLC acted as joint book-running managers for the offering.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
NEW YORK, May 22, 2025 (GLOBE NEWSWIRE) -- Medallion Bank (Nasdaq: MBNKP, MBNKO), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today that it has closed a public offering of 3,100,000 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 (the “Series G Preferred Stock”) and an aggregate liquidation amount of $77.5 million, which includes a partial exercise of the underwriters’ option to purchase an additional 100,000 shares of the Series G Preferred Stock. The offering priced on May 15, 2025.
Medallion Bank’s Series G Preferred Stock commenced trading on the Nasdaq Capital Market under the ticker symbol “MBNKO” on May 22, 2025. Medallion Bank remains a wholly owned subsidiary of Medallion Financial after the 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 (the “Series F Preferred Stock”), subject to the prior approval of the Federal Deposit Insurance Corporation.
Piper Sandler & Co. and Lucid Capital Markets, LLC acted as joint book-running managers. A.G.P./Alliance Global Partners, B. Riley Securities, Inc., InspereX LLC, Ladenburg Thalmann & Co. Inc., Muriel Siebert & Co., LLC, Wedbush Securities Inc., and William Blair & Company, L.L.C. acted as lead managers.
The offering of the Medallion Bank’s Series G Preferred Stock was exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 3(a)(2) of that Act and was made only by means of an offering circular. 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 any other Federal or state regulatory body.
The final offering circular relating to the offering is available at medallionbankoffering.com. In addition, copies of the final offering circular may also be obtained from: Piper Sandler & Co.; Attn: Debt Capital Markets, 1 Greenwich Plaza, 1st Floor, Suite 111, Greenwich, CT 06830, or by email at [email protected].
About Medallion Bank
Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp.
This press release contains “forward-looking statements”, which reflect Medallion Bank’s current views with respect to future events and which address matters that are, by their nature, inherently uncertain and beyond Medallion Bank’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 G Preferred Stock and the anticipated use of the net proceeds by Medallion Bank and are subject to numerous conditions, many of which are beyond the control of Medallion Bank. No assurance can be given that Medallion Bank will decide to redeem its Series F Preferred Stock or, if it does, the amount to be redeemed and the timing of redemption and required regulatory approval. Medallion Bank 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 Bank is or may be subject, please refer to the factors discussed under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” in 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.
This press release does not constitute a notice of redemption with respect to the Series F Preferred Stock. If Medallion Bank decides to redeem the Series F Preferred Stock, it intends to announce its decision by press release and an appropriate notice of redemption during the applicable notice window.
Company Contact:
Investor Relations
212-328-2176
[email protected]
