Medallion Bank's Series G Preferred Stock Offering Overview
Medallion Bank's New Series G Preferred Stock Offering
Medallion Bank, an FDIC-insured financial institution focused on consumer lending for recreational vehicles, boats, and home improvements, has recently announced the pricing of its public offering for 3,000,000 shares of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, designated as Series G. Each share holds a par value of $1.00, with a planned liquidation amount set at $25 per share, leading to an aggregate amount of $75 million.
Details of the Preferred Stock
The Series G Preferred Stock will accrue dividends on its liquidation amount at an attractive fixed rate. Initially, from the date of issuance until July 1, 2030, the dividends will be set at 9.00% annually. After this date, the rate will adjust to match the five-year U.S. Treasury rate plus an additional 4.94% per annum. Medallion Bank plans to pay these dividends quarterly on January 1, April 1, July 1, and October 1, starting from October 1, 2025, dependent on the board's declarations and available funds.
Trading and Underwriting Structure
This new favorite among investors is expected to trade on the Nasdaq Capital Market under the ticker symbol “MBNKO.” Notably, the underwriters of this offering have been given a 30-day option to buy up to 450,000 extra shares to cover any over-allotments. After the offering's completion, Medallion Bank will continue being a wholly owned subsidiary of Medallion Financial Corporation, underpinning its stability and partnership.
Intended Use of Proceeds
Medallion Bank plans to redirect the raised funds from this equity offering towards various corporate functions. These may include bolstering the bank's capital reserves, expanding its consumer loan portfolios, or possibly redeeming its previously issued Series F Non-Cumulative Perpetual Preferred Stock with appropriate regulatory approvals. The completion of this offering is anticipated to finalize smoothly, adhering to standard closing conditions.
Management Teams and Underwriters
Piper Sandler & Co. and Lucid Capital Markets, LLC are leading this offering as joint book-running managers. A generous array of supporting financial institutions, including A.G.P./Alliance Global Partners, B. Riley Securities, Inc., and several others are backing this initiative as lead managers, showcasing strong industry confidence in Medallion Bank’s strategic direction.
Additional Information
The offering is classified as exempt under the Securities Act of 1933, specifically under Section 3(a)(2). Investors interested in further information will find the preliminary offering circular accessible directly through Medallion Bank’s designated offerings platform. The opportunity to subscribe to shares of this unique investment is open to qualified individuals, contributing to Medallion's growth narrative.
About Medallion Bank
Medallion Bank, a Utah-chartered industrial bank, specializes in consumer-focused loans to enhance the enjoyment of life through recreational vehicle acquisitions, boating, and home improvement services. Notably, this bank collaborates closely with a wide network of dealers, contractors, and financial service experts nationwide, ensuring ease of access for families and individuals living throughout the United States. This strong interface with the community empowers Medallion to grow robustly while providing essential banking solutions.
Frequently Asked Questions
What is the Series G Preferred Stock?
The Series G Preferred Stock is a type of equity security providing fixed dividends and having specific financial terms, pricing, and a high prospect for long-term benefits.
How will the dividends be structured?
Dividends will initially be set at 9.00% per annum and will fluctuate starting July 1, 2030, based on the five-year U.S. Treasury rate plus a margin.
Who manages the offering?
The offering is managed by Piper Sandler & Co. and Lucid Capital Markets, LLC, supported by a range of other financial institutions.
What are the expected proceeds for?
The proceeds are intended for general corporate purposes, potentially enhancing capital reserves, growing loan portfolios, or redeeming previous stock issues.
What is Medallion Bank known for?
Medallion Bank specializes in consumer loans for recreational and home improvement expenses, effectively catering to a broad range of client needs across the nation.
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