Salt Lake City-based Medallion Bank launched an initial public offering of its series F fixed-to-floating rate noncumulative perpetual preferred shares with a liquidation preference of $25 per share.
The Medallion Financial Corp. unit expects to grant the underwriters a 30-day option to purchase additional shares of the series F preferred stock to cover overallotments, if any.
Medallion Bank plans to use the net proceeds for general corporate purposes, which may include increasing its capital levels, growing its consumer loan portfolios, or redeeming some or all of its outstanding senior series E noncumulative perpetual preferred shares.
Medallion Bank will remain a wholly owned unit of Medallion Financial following the completion of the offering.
Sandler O'Neill & Partners LP serves as the book-running manager for the offering. B. Riley FBR, Northland Capital Markets, Incapital LLC, Wedbush PacGrow and American Capital Partners LLC are co-managers.