Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that it raised a total of approximately $36,000,000 in a private placement of debt.
The notes issued by Medallion Financial bear interest at a fixed rate of 7.680% until September 2012, and thereafter at a variable rate of 90 day LIBOR plus 2.125%. The notes mature in September 2037, and are callable by Medallion Financial at par on or after September 6, 2012, or earlier under certain circumstances.
Andrew Murstein, President of Medallion Financial stated, “We are very pleased with the just completed new financing. For the very first time, we were able to tap this market as a new funding source. Over the last three years we have grown our managed assets from $633,000,000 to $940,000,000, an increase of 48%. This has all been done by our effectively leveraging our substantial equity base.
