Financing ·
Medallion Financial agrees to repurchase $15M trust preferred securities for $11.049M
MBNKOMedallion Financial Corp
Medallion Financial Corp. entered into a Purchase and Settlement Agreement with BIMIZCI Fund LLC and ZimCal Asset Management LLC to repurchase trust preferred securities of Medallion Financing Trust I having a liquidation amount of $15,000,000 for an aggregate cash purchase price of $11,049,000 plus accrued distributions. The transaction represents a 73.66% discount to face value and is expected to close within thirty days subject to customary conditions. As part of the resolution, investor parties agreed to a five-year standstill restricting proxy contests and must dispose of all remaining common stock by December 31, 2026. The company expects to record a gain from the repurchase in the fourth quarter of 2026. Medallion Financial Corp. is a specialty finance company that originates and services consumer and commercial loans.