trending Market Intelligence /marketintelligence/en/news-insights/trending/Wg4eP20VdHc6WASRO1tl6A2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Medallion Bank prices public offering of series F preferred shares

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

Medallion Bank prices public offering of series F preferred shares

Salt Lake City-based Medallion Bank on Dec. 10 priced an initial public offering of 1.6 million shares of its series F fixed-to-floating rate noncumulative perpetual preferred shares with a liquidation amount of $25 per share.

The Medallion Financial Corp. unit granted the underwriters a 30-day option to purchase up to an additional 240,000 shares of the series F preferred stock solely to cover overallotments.

Dividends will accrue on the liquidation amount of $25 per series F preferred share at a rate per annum equal to 8.00% from the original issue date of the stock to, but excluding, April 1, 2025, and a floating rate equal to a benchmark rate, which is expected to be a three-month term secured overnight financing rate, plus 6.46% from, and including, April 1, 2025.

Dividends will be payable in arrears Jan. 1, April 1, July 1 and Oct. 1 of each year, starting April 1, 2020.

The offering is expected to close Dec. 17. Medallion Bank intends to use the net proceeds from the transaction 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 stock, subject to the prior approval of the Federal Deposit Insurance Corp.

Medallion Bank will remain a wholly owned subsidiary of Medallion Financial upon completion of the offering. The bank's series F preferred stock is expected to trade on the Nasdaq Capital Market under the ticker symbol MBNKP.

Sandler O'Neill & Partners LP, B. Riley FBR and Ladenburg Thalmann are the joint book-running managers for the offering. BB&T Capital Markets is lead manager, and Wedbush Securities is co-manager.