Medallion Financial greenshoe ups 9% five-year notes to $33.63 million

By Susanna Moon

Chicago, April 29 – Medallion Financial Corp. said the underwriters of its 9% $25-par notes due 2021 exercised $3,625,000 of their over-allotment option.

The partial greenshoe exercise brings the total deal size to $33,625,000, according to a company announcement.

As previously reported, Medallion priced $27.5 million of the notes on April 12 and then upsized the issue the following day to $30 million as a result of increased demand.

The deal included a 30-day over-allotment option for another $4.5 million of notes.

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.

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