Key Colony Fund LP bought a 5.26% stake in Medallion Financial Corp. through the purchase of 1,286,360 common shares for about $6.1 million, including commissions.
The company, together with Key Colony Management LLC, general partner of Key Colony Fund, and Alex Lieblong, managing member of Key Colony Management, acquired the common shares for investment purposes. The entities believed that the shares were undervalued and represented an attractive investment opportunity.
They will review their investment in Medallion Financial on a continuing basis and may meet with the company's management, board, shareholders and other relevant parties from time to time to discuss the business, operations and future plans of Medallion Financial.
The source of funds used for the purchases was the available working capital funds of Key Colony Fund.