Medallion Bank which is a subsidiary of Medallion Financial (MFIN) is going to offer a new issue of fixed-to-floating rate preferred.
Details of the new issue are rather sketchy at this time as Medallion Bank is regulated by the FDIC and thus doesn’t file with the SEC so we don’t have the normal notices.
It is likely that this will be a junk issue with a coupon that is higher than for most banks.
Medallion Bank is owned by Medallion Financial which currently has a 9% baby bond outstanding (MFINL) which trades around $25.25 and matures in 2021. Medallion Financial went through some tough times years back because there primarily business was lending on taxi medallions in NYC. They appear to getting the business under control with emphasis on more consumer lending.
At this moment we only have the press release on this new issue which you can read here. We will be watching for further data.
Thanks to Eugene for letting us know of this issue through the READER INITIATED ALERT page.