Medallion Financial Corp. announced that it has completed a private placement of $17.5 million aggregate principal amount of senior unsecured notes to a certain institutional investor, by amending and restating its existing 9.00% senior notes due 2033. The notes now mature on June 30, 2039, and bear a fixed interest rate of 8.875% per year, paid semi-annually commencing June 30, 2024.

The notes received an investment grade rating of A- by Egan-Jones. As disclosed via a Current Report on Form 8-K filed on December 28, 2023, the Company initially completed a private placement of $12.5 million aggregate principal amount of senior unsecured notes to a certain institutional investor. At that time, the notes were to mature on December 30, 2033, and bear a fixed interest rate of 9.00% per year, paid semi-annually, with the initial payment expected on June 30, 2024.

On June 24, 2024, the Company completed a private placement amending and restating such 9.00% senior notes due 2033 with the same institutional investor. The primary changes were to increase the principal amount from $12.5 million to $17.5 million, or an increase of $5.0 million, extend the maturity date from December 30, 2033 to June 30, 2039, and decrease the fixed interest rate from 9.00% to 8.875%. The net proceeds will be used for general corporate purposes.