By Susanna Moon
Chicago, April 13 – Medallion Financial Corp. said it increased the size of its 9% $25-par notes due 2021 to $30 million the day after pricing as a result of increased demand.
The deal includes a 30-day over-allotment option for another $4.5 million of notes, according to a company announcement.
As announced, Medallion priced $27.5 million of the notes on April 12.
Keefe, Bruyette & Woods, Inc. and Sandler O’Neill & Partners, LP are the bookrunners. Janney Montgomery Scott LLC is the lead manager. Ladenburg Thalmann & Co. Inc. is the co-manager.
Beginning April 15, 2020, the notes have a make-whole call option at Treasuries plus 50 basis points. The notes are putable at par upon a change of control.
The company plans to apply to list the notes on the Nasdaq Global Select Market under the ticker symbol “TAXIL.”
Proceeds will be used to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under the company’s revolving credit facilities in the ordinary course of business and expanding its operations.
The notes rank senior to the company’s fixed/floating-rate junior subordinated notes.
New York-based Medallion Financial is a specialty finance company that originates and services loans in commercial industries.
| Issuer: | Medallion Financial Corp.
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| Issue: | Notes
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| Amount: | $30 million, up from $27.5 million
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| Greenshoe: | $4.5 million
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| Maturity: | April 15, 2021
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| Bookrunners: | Keefe, Bruyette & Woods, Inc. and Sandler O’Neill & Partners, LP
|
| Lead manager: | Janney Montgomery Scott LLC
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| Co-manager: | Ladenburg Thalmann & Co. Inc.
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| Coupon: | 9%, payable quarterly
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| Price: | Par of $25
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| Yield: | 9%
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| Call option: | Make-whole call option at Treasuries plus 50 bps beginning April 15, 2020
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| Put option: | At par upon a change of control
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| Pricing date: | April 12
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| Upsized: | April 13
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| Expected listing: | Nasdaq: TAXIL
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