Medallion Financial Corp. Announces Sale of Its Nascar Race Team Investment

Rhea-AI Summary

Medallion Financial (NASDAQ: MFIN) announced the complete divestiture of its NASCAR team, Richard Petty Motorsports (RPAC), to Warp Speed, LLC, for $19.1 million in gross proceeds. This transaction eliminates $26 million in intangible assets from the company’s balance sheet and boosts its tangible book value by over $1 per share. The company has a history of over $9 billion in loans since its IPO in 1996. CEO Andrew Murstein highlighted the successes achieved during their tenure with RPAC, including increased diversity in motorsports.

Positive

• Received $19.1 million in gross proceeds from divestiture.
• Eliminated $26 million in intangible assets from the balance sheet.
• Increased tangible book value by over $1 per share.

Negative

• None.

NEW YORK, Dec. 02, 2021 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN, “Medallion Financial” or the “Company”), a finance company that originates and services loans in various consumer and commercial industries, announced today that it has closed on the exit of its investment in its NASCAR race team - Richard Petty Motorsports (RPAC) – to Warp Speed, LLC. The Company received $19.1 million of gross proceeds in full settlement of all debt and equity securities it held. The transaction results in a complete divestiture of RPAC by the Company, removes $26 million of intangible assets from the Company’s balance sheet and increases the Company’s tangible book value by over $1 per share.

Executive Commentary – Andrew Murstein, President and Chief Operating Officer

“Richard Petty is one of the most iconic names in professional sports. We are extremely proud of what we accomplished during our tenure with Richard Petty Motorsports (RPAC), including winning numerous races, bringing greater diversity to the motorsports industry, and helping position RPAC for long-term success. We look forward to passing the baton to the next steward of this great legacy in this great sport.”

About Medallion Financial Corp.

Medallion Financial Corp., primarily through its wholly-owned subsidiary Medallion Bank, is a finance company that originates and services consumer loans and loans in various commercial industries. Medallion Financial Corp. has lent more than $9 billion since its initial public offering in 1996. For more information, please visit www.medallion.com.

Company Contact:

Investor Relations
212-328-2176
InvestorRelations@medallion.com

FAQ

What is the significance of Medallion Financial's divestiture of Richard Petty Motorsports?

The divestiture allows Medallion Financial to eliminate $26 million in intangible assets and increase its tangible book value by over $1 per share.

How much did Medallion Financial receive from the sale of its NASCAR team?

Medallion Financial received $19.1 million in gross proceeds from the sale to Warp Speed, LLC.

What impact does the divestiture have on Medallion Financial's balance sheet?

The divestiture removes $26 million of intangible assets from the balance sheet, improving financial clarity.

When was the divestiture of Richard Petty Motorsports announced?

The divestiture was announced on December 2, 2021.