Medallion Bank, a wholly owned subsidiary of Medallion Financial Corp., announced on September 23, 2026, the pricing of a public offering of 2,200,000 shares of its Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G. The offering is a reopening of the original issuance that took place on May 22, 2025. The Series G Preferred Stock has a par value of $1.00 per share and a liquidation amount of $25 per share, resulting in an aggregate liquidation amount of $55,000,000.
The dividend structure for the Series G Preferred Stock is tiered. From the original issue date until, but excluding, July 1, 2030, dividends accrue at a fixed rate of 9.00% per annum. Beginning on July 1, 2030, the dividend rate resets to equal the five-year U.S. Treasury rate plus 4.94% per annum. Dividends are payable in arrears on January 1, April 1, July 1, and October 1 of each year, subject to declaration by the Bank's board of directors.
Medallion Bank intends to use the net proceeds from this offering for general corporate purposes. Specifically, the Bank may redeem some or all of its outstanding Senior Series E Non-Cumulative Perpetual Preferred Stock, subject to prior approval from the Federal Deposit Insurance Corporation. The offering is expected to close on September 30, 2026, subject to customary closing conditions.
The underwriters have been granted a 30-day option to purchase up to an additional 330,000 shares solely to cover over-allotments. The offering is being managed by a syndicate of financial institutions including Piper Sandler & Co., Lucid Capital Markets, LLC, Muriel Siebert & Co., LLC, A.G.P. / Alliance Global Partners, and Ladenburg Thalmann & Co. Inc., as joint book-running managers, alongside William Blair & Company, L.L.C., InspereX LLC, B. Riley Securities, Inc., and Clear Street LLC as lead managers.
