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Medallion Financial Corp. Announces Launch of Initial Public Offering of Preferred Stock by Medallion Bank

January 8, 2019

NEW YORK--(BUSINESS WIRE)--Jan 8, 2019--Medallion Financial Corp. (Nasdaq: MFIN, “Medallion Financial”) announced today that its wholly owned subsidiary, Medallion Bank, has launched an initial public offering of shares of its Series F Fixed-to-Floating Rate Noncumulative Perpetual Preferred Stock, par value $1.00 per share, with a liquidation preference of $25 per share (the “Series F Preferred Stock”). Medallion Bank’s Series F Preferred Stock is expected to trade on the Nasdaq Capital Market under the ticker symbol “MBNKP.” Medallion Bank will remain a wholly owned subsidiary of Medallion Financial upon completion of the offering.

Medallion Bank expects to grant the underwriters a 30-day option to purchase additional shares of the Series F Preferred Stock solely to cover over-allotments, if any.

Medallion Bank intends to use the net proceeds from this offering for general corporate purposes, which may include, among other things, increasing Medallion Bank’s capital levels, growing its consumer loan portfolios or redeeming some or all of its outstanding Senior Series E Non-Cumulative Perpetual Preferred Stock, subject to the prior approval of the Federal Deposit Insurance Corporation.

Sandler O’Neill + Partners, L.P. is acting as book-running manager. B. Riley FBR, Northland Capital Markets, Incapital LLC, Wedbush PacGrow and American Capital Partners, LLC are acting as co-managers.

The offering will be made only by means of an offering circular. A registration statement on Form 10 relating to the securities has been filed with the Federal Deposit Insurance Corporation but has not yet become effective. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The securities are neither insured nor approved by the Federal Deposit Insurance Corporation or the Utah Department of Financial Institutions.

The preliminary offering circular relating to the offering and the registration statement on Form 10 are available at medallionbankoffering.com. In addition, copies of the preliminary offering circular may also be obtained from: Sandler O’Neill + Partners, L.P.; Attn: Syndicate, 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, by phone at (866) 805-4128 or by email at syndicate@sandleroneill.com.

About Medallion Financial and Medallion Bank

Medallion Financial Corp. is a finance company that originates and services loans in various industries. Medallion Financial Corp. has lent more than $8 billion since its initial public offering in 1996.

Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City, Utah. Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats and trailers and for home improvements such as replacement windows and roofs.

This press release contains “forward-looking statements”, which reflect Medallion Financial’s current views with respect to future events and which address matters that are, by their nature, inherently uncertain and beyond Medallion Financial’s control. These statements are often, but not always, made through the use of words or phrases such as “expect” and “intend” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to the offering of shares of the Series F Preferred Stock, the anticipated use of the net proceeds by Medallion Bank and the grant to the underwriters of an option to purchase additional shares of the Series F Preferred Stock. No assurance can be given that the transaction discussed above will be completed on the terms described, or at all. Completion of the offering on the terms described, including the grant of the option to the underwriters, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of Medallion Financial. Medallion Financial undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a description of certain risks to which Medallion Financial is or may be subject, please refer to the factors discussed under the heading “Risk Factors,” in Medallion Financial’s 2017 Annual Report on Form 10-K. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in the preliminary offering circular attached as Exhibit 99.1 to Medallion Bank’s Form 10 filed with the Federal Deposit Insurance Corporation.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190108005605/en/

CONTACT: Company Contact:

Alex Arzeno

Investor Relations

212-328-2176

InvestorRelations@medallion.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Medallion Financial Corp.

Copyright Business Wire 2019.

PUB: 01/08/2019 09:05 AM/DISC: 01/08/2019 09:05 AM

http://www.businesswire.com/news/home/20190108005605/en

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