Medallion Financial Corp. Announces Repurchase of Trust Preferred Securities and Successful Resolution With ZimCal
Key Highlights
- ➤Medallion will repurchase $15.0 million TruPS for $11.049 million, or 73.66% of face value
- ➤Repurchase generates a fourth-quarter 2026 gain from the TruPS carrying-value discount
- ➤ZimCal and BIMIZCI agree to five-year standstill and exit Medallion shares by December 31, 2026
- ➤Medallion has returned approximately $84.7 million to common shareholders since 2022
- ➤Transaction is expected to close within thirty days, subject to customary conditions
Expert Statements
Andrew Murstein, President and CEO of Medallion Financial Corp.
“This transaction is expected to be immediately accretive and delivers compelling value for our common shareholders”
Andrew Murstein, President and CEO of Medallion Financial Corp.
“Together with our substantial capital-return program through dividends and buybacks, repurchasing nearly half of the Company’s outstanding TruPS at a meaningful discount demonstrates our confidence in the continued strength and flexibility of our lending platform.”
Andrew Murstein, President and CEO of Medallion Financial Corp.
“Our common stock recently traded at its highest level in approximately twelve years, returning to levels last seen before the rise of ride-sharing significantly disrupted the taxi-medallion industry”
Andrew Murstein, President and CEO of Medallion Financial Corp.
“At the same time, we have reduced our net taxi-medallion-related assets to just 0.1% of total assets. We believe these milestones demonstrate the success of our transformation from a company historically identified with taxi-medallion lending into a thriving diversified and growing specialty finance company.”
Stephen Hodges, Founder of ZimCal Asset Management LLC
“We invested in Medallion because we believed the business had tremendous potential”
Stephen Hodges, Founder of ZimCal Asset Management LLC
“Our recent discussions with Medallion management were constructive and productive, and we reached a mutually acceptable resolution that we believe serves the interests of all stockholders and allows both parties to move forward. We wish the Company and its stockholders well.”
NEW YORK, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN) (“Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan-origination services to fintech strategic partners, today announced that the Company has entered into a purchase and settlement agreement (the “Purchase Agreement”) with BIMIZCI Fund LLC (“BIMIZCI”) and ZimCal Asset Management LLC (“ZimCal” and, together with BIMIZCI, the “Investor Parties”).
Pursuant to the Purchase Agreement, the Company has agreed to repurchase from BIMIZCI trust preferred securities (“TruPS”) with a liquidation amount of $15.0 million for 73.66% of face value. The Investor Parties have also agreed to a five-year standstill prohibiting any proxy solicitation or other campaigns against the Company and to dispose of any remaining shares of Medallion common stock by December 31, 2026.
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