As some on the site already know Medallion Bank (a division of Medallion Financial (MFIN)) has sold a new issue of high yield preferred stock.
Note that this was sold last week, but has just begun trading. It is trading weak–now at $24.48.
Note that this issue is floating starting in 2025 and is NOT trading with a 3 month Libor rate, but is with 3 Month SOFR (the replacement for 3 month Libor). You can see the SOFR page at the New York FED here.
The coupon on this issue is high because they are a higher risk lender. Parent company Medallion Financial was the main lender for taxi medallions which has become a very poor business with the advent of Lyft and Uber. Recent financials appear to show they are slowly recovering by reducing taxi medallion lending drastically–which has involved many writedowns in the past.
Approach this issue with caution and make sure you do your due diligence.
The best place for research is the company website–here.
Medallion Bank is regulated by the FDIC so they do NOT file with the SEC.
Parent company Medallion Financial has a 9% baby bond outstanding which trades well–now at $26.33
For those wanting to access the FDIC regulated filings you can go here and then search by Medallion Bank.