Medallion Financial Corp. Announces Completion of Private Placement of $75.0 Million of Senior Notes to Group Led by JP Morgan Investment Management Inc.

Rhea-AI Summary

Medallion Financial (NASDAQ: MFIN) completed a private placement of $75.0 million aggregate principal amount of senior unsecured notes due May 1, 2031, carrying a fixed 8.25% annual interest rate paid semi-annually. The Notes received an A- rating from Egan-Jones and were led by JP Morgan Investment Management Inc. Proceeds will support consumer and commercial lending segments and general corporate purposes. Piper Sandler served as sole placement agent. The notes were sold in a private placement and are not registered under the Securities Act.

Positive

• $75.0 million of new capital closed
• Fixed-rate funding at 8.25% through May 1, 2031
• A- rating from Egan-Jones for the Notes
• Institutional lead investor: JP Morgan Investment Management

Negative

• Notes are senior unsecured with no collateral
• Private placement: unregistered securities limiting public resale
• Fixed coupon implies ongoing 8.25% interest expense until 2031

News Market Reaction – MFIN

-1.59%

-1.59% Session close to close

In the Apr 29 session, MFIN declined 1.59%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a $75.0M private placement of A- rated senior unsecured notes, maturing in...

Analysis

This announcement details a $75.0M private placement of A- rated senior unsecured notes, maturing in 2031 with an 8.25% fixed coupon, to institutional investors led by JP Morgan Investment Management Inc. Proceeds are earmarked for growing consumer and commercial lending and general corporate purposes. In context of prior note financings and solid 2025 earnings, investors may watch how leverage, funding costs, and credit performance evolve relative to loan growth and profitability.

Key Figures

Senior notes amount: $75.0M Coupon rate: 8.25% per year Maturity date: May 1, 2031 +3 more

6 metrics

Senior notes amount $75.0M Aggregate principal amount of new senior unsecured notes

Coupon rate 8.25% per year Fixed interest rate on senior unsecured notes

Maturity date May 1, 2031 Maturity of new senior unsecured notes

Credit rating A- Investment grade rating by Egan-Jones on the Notes

Prior notes amount $17.5M Principal of amended senior unsecured notes in Jun 2024

Prior rate reduced 9.00% to 8.875% Interest rate change on 2024 amended notes

Previous Private placement Reports

1 past event · Latest: Jun 25 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 25	Private placement notes	Positive	+0.4%	Amended $17.5M senior notes, extended maturity and lowered interest rate.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Prior private placement news saw a modestly positive 0.44% next-day move, indicating historically muted but constructive reactions to similar financing updates.

Recent Company History

Over recent months, Medallion has reported stronger 2025 results, with Q4 net income of $12.2M ($0.50/share) and full-year net income of $43.0M ($1.78/share), alongside loan originations reaching $1.505B. A June 2024 private placement of $17.5M senior notes, rated A- by Egan-Jones, produced a 0.44% price gain. Today’s larger $75.0M senior notes private placement continues this pattern of using investment grade debt to fund growth and general corporate purposes.

Key Terms

private placement, senior unsecured notes, investment grade, institutional investors, +1 more

5 terms

private placement financial

"it has completed a private placement of $75.0 million aggregate principal amount"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

senior unsecured notes financial

"aggregate principal amount of senior unsecured notes (the “Notes”) to a group"

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

investment grade financial

"The Notes received an investment grade rating of A- by Egan-Jones."

A credit rating label assigned to bonds or borrowers that signals relatively low risk of default; think of it as a strong health check for a company's or government's ability to repay debt. It matters to investors because investment-grade status typically means lower interest costs for the borrower, greater eligibility for conservative funds and pension portfolios, and generally more stable returns compared with higher-risk, non-investment-grade debt.

View in glossary

institutional investors financial

"senior unsecured notes (the “Notes”) to a group of institutional investors led"

Institutional investors are large organizations, like pension funds, insurance companies, and mutual funds, that invest huge amounts of money on behalf of many people. Their decisions can influence the economy because they buy and sell big chunks of stocks, bonds, or other assets. They matter because their actions can affect market prices and trends.

placement agent financial

"Piper Sandler & Co. served as sole placement agent for the offering."

A placement agent is a professional or firm that helps organizations raise money from investors, such as individuals, institutions, or funds. They act like matchmakers, connecting those seeking investments with the right investors and guiding the process to ensure successful funding. For investors, they can provide access to exclusive opportunities and help navigate complex fundraising efforts.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today that it has completed a private placement of $75.0 million aggregate principal amount of senior unsecured notes (the “Notes”) to a group of institutional investors led by JP Morgan Investment Management Inc. The Notes, which will mature on May 1, 2031, bear a fixed interest rate of 8.25% per year, paid semi-annually. The Notes received an investment grade rating of A- by Egan-Jones.

The Company plans to use the proceeds to support its growing consumer and commercial lending segments and for general corporate purposes.

“We are pleased to announce the closing of this latest private placement as we expand our capital abilities and continue to grow our businesses,” stated Andrew Murstein, President and CEO of Medallion. “We’d like to thank all of our current lenders for their continued support, and want to especially thank our newest lender. We are delighted with the relationships we’ve forged through the years with our debt investors and stakeholders, many relationships spanning more than four decades. We are proud to welcome JP Morgan Investment Management Inc., one of the world’s leading institutional investors, as a new partner. We value the confidence they have shown in our business and in our future.”

Piper Sandler & Co. served as sole placement agent for the offering.

The offer and sale of the notes have not been registered under the Securities Act of 1933, or any state securities laws, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to the registration requirements of the Securities Act and applicable state laws.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities of the Company, nor shall there be any sale of the notes or any other securities of the Company in any state or other jurisdiction in which, or to any person to whom, such offer, solicitation or sale is unlawful.

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries, and loan products and services offered through fintech strategic partners. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, expectations regarding our loan portfolio, including collections on our taxi medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, for a description of certain risks to which Medallion is or may be subject, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2025 Annual Report on Form 10-K.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

Investor Relations
The Equity Group Inc.
Lena Cati
lcati@theequitygroup.com
(212) 836-9611

Val Ferraro
vferraro@theequitygroup.com
(212) 836-9633

FAQ

What did Medallion Financial (MFIN) announce on April 28, 2026 about new debt?

Medallion announced a private placement of $75.0 million in senior unsecured notes due May 1, 2031. According to the company, proceeds will support its consumer and commercial lending segments and general corporate purposes.

What are the interest rate and payment terms for MFIN's new senior notes?

The notes carry a fixed 8.25% annual interest rate paid semi-annually. According to the company, the coupon is fixed for the term through the 2031 maturity date.

Who led the investor group for Medallion Financial's (MFIN) private placement?

The offering was led by JP Morgan Investment Management Inc. as the lead institutional investor. According to the company, Piper Sandler served as sole placement agent for the transaction.

How were Medallion Financial's (MFIN) new notes rated and by whom?

The notes received an A- rating from Egan-Jones. According to the company, that rating applies specifically to the private placement notes.

Are Medallion Financial's (MFIN) new senior notes registered for public resale?

No, the notes were sold in a private placement and are not registered under the Securities Act. According to the company, resale is limited absent registration or an applicable exemption.