Medallion Financial Corp. Completes \$75 Million Private Placement Led by JP Morgan Investment Management
Medallion Financial Corp. Completes \$75 Million Private Placement Led by JP Morgan Investment Management
Key Highlights for Investors
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Private Placement Completion: Medallion Financial Corp. (NASDAQ: MFIN) has successfully completed a \$75.0 million private placement of senior unsecured notes, marking a significant capital raising event.
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Led by Major Institutional Investor: The placement was led by a group of institutional investors, with JP Morgan Investment Management Inc. as the lead—underscoring strong institutional confidence in Medallion’s business model and growth prospects.
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Note Details:
- Maturity Date: May 1, 2031
- Interest Rate: Fixed at 8.25% per annum, paid semi-annually
- Credit Rating: Investment grade rating of A- by Egan-Jones
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Use of Proceeds: The company intends to use the proceeds to support its expanding consumer and commercial lending operations, as well as for general corporate purposes. This is expected to drive further growth in its core lending and fintech-focused businesses.
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Placement Agent: Piper Sandler & Co. served as the sole placement agent for the offering.
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Regulatory Note: The notes were offered and sold through a private placement and have not been registered under the Securities Act of 1933. They cannot be offered or sold in the U.S. without proper registration or exemption.
Key Statements from Management
“We are pleased to announce the closing of this latest private placement as we expand our capital abilities and continue to grow our businesses. We are delighted with the relationships we’ve forged through the years with our debt investors and stakeholders, many spanning more than four decades. We are proud to welcome JP Morgan Investment Management Inc., one of the world’s leading institutional investors, as a new partner. We value the confidence they have shown in our business and in our future.”
– Andrew Murstein, President and CEO of Medallion Financial Corp.
What Shareholders Need to Know
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This capital raise is significant: The \$75 million infusion at an 8.25% interest rate, with an investment grade rating, positions Medallion Financial to accelerate the growth of its core lending business across key industries, including recreation (RV and marine), home improvement (roofing, pools, windows), and fintech partnerships.
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Strengthened Institutional Backing: The involvement of JP Morgan Investment Management Inc. as a lead investor is a strong endorsement and could enhance market confidence.
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Potential Impact on Share Price: This transaction enhances the company’s liquidity and financial flexibility, which could be positively received by the market and potentially impact the share price, especially given the growth trajectory and the high-profile nature of the investor group.
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Forward-looking Statements: Management has flagged that future performance may be affected by external factors such as economic conditions, inflation, risk of recession, and other unpredictable developments. Investors should review the company’s 2025 Annual Report for a detailed risk assessment.
About Medallion Financial Corp.
Medallion Financial Corp. is a specialty finance company focused on originating and servicing consumer and commercial loans in industries such as recreation (towable RVs and marine) and home improvement (e.g., roofs, pools, windows). The company also partners with fintech firms for loan origination. Headquartered in New York City, its largest subsidiary, Medallion Bank, is based in Salt Lake City, Utah.
For additional information, visit www.medallion.com.
Investor Contacts
- Medallion Financial Corp. Investor Relations: 212-328-2176, [email protected]
- The Equity Group Inc.:
Disclaimer
This article contains forward-looking statements that involve risks and uncertainties, including but not limited to business performance, macroeconomic factors, and growth strategy. Actual results may differ materially from those described. Investors are encouraged to review the company’s filings and consult with their financial advisors before making investment decisions.
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