Medallion Financial Corp. Announces Repurchase of Trust Preferred Securities and Successful Resolution With ZimCal

The agreed repurchase price is 73.66% of face value, with a gain to be recorded in the fourth quarter of 2026.

Rhea-AI Summary

Medallion Financial (NASDAQ: MFIN) agreed to repurchase trust preferred securities with a $15.0 million liquidation amount from BIMIZCI Fund. The purchase price is $11.049 million, or 73.66% of face value, plus accumulated distributions through repurchase. Medallion expects closing within thirty days and will record a gain in the fourth quarter of 2026.

Under the purchase and settlement agreement, BIMIZCI and ZimCal Asset Management accepted a five-year standstill prohibiting proxy solicitations or other campaigns against Medallion. They also agreed to dispose of remaining Medallion common shares by December 31, 2026. Medallion expects the transaction to be immediately accretive. Since 2022, it has returned approximately $84.7 million to common shareholders through buybacks and dividends.

6 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.TruPS repurchase at 73.66% of face value will generate a fourth-quarter 2026 gain.
• Moderate pointBIMIZCI and ZimCal accepted a five-year standstill prohibiting proxy solicitations or other campaigns against Medallion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Medallion expects the transaction to be immediately accretive.
• Minor pointCommon-shareholder capital returns total approximately $84.7 million since 2022, including approximately $23.6 million in the current year.
• Minor pointNet taxi-medallion-related assets have been reduced to 0.1% of total assets.
• Minor pointCommon stock recently traded at its highest level in approximately twelve years.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Repurchase requires $11.049 million plus accumulated distributions through the repurchase date. 4.3% of market cap

Key Figures

TruPS liquidation amount: $15.0 million Repurchase price as a share of face value: 73.66% of face value Agreed purchase price: $11.049 million plus accumulated distributions +5 more

TruPS liquidation amount

$15.0 million

Securities to be repurchased from BIMIZCI

Repurchase price as a share of face value

73.66% of face value

Agreed TruPS repurchase terms

Agreed purchase price

$11.049 million plus accumulated distributions

TruPS repurchase

Standstill period

Five years

Investor Parties agreed not to solicit proxies or campaign against the Company

Deadline to dispose of remaining shares

December 31, 2026

Investor Parties’ remaining Medallion common stock

Expected gain recognition

Fourth quarter of 2026

Gain from the TruPS repurchase

Expected transaction closing

Within thirty days

Subject to customary closing conditions

Combined capital returned to common shareholders

Approximately $84.7 million

Since 2022, through repurchases and dividends

Key Terms

trust preferred securities, liquidation amount, proxy solicitation, form 8-k

4 terms

trust preferred securities financial

"repurchase from BIMIZCI trust preferred securities (“TruPS”)"

Trust preferred securities are a hybrid investment that blends features of bonds and stocks: an issuing company places assets into a separate trust which sells these securities and passes regular payments to holders much like bond interest. They can behave like equity for regulatory or accounting purposes while still offering a fixed-income stream, so they matter to investors because they carry higher income than plain bonds but also higher risk and potential sensitivity to issuer capital and credit moves.

liquidation amount financial

"with a liquidation amount of $15.0 million"

The liquidation amount is the cash value realized and payable when an asset, business, or investment is sold off or formally wound up, after paying selling costs and higher-priority claims such as secured creditors and administrative expenses. It matters to investors because it determines how much money different claimants—bondholders, preferred and common shareholders—actually receive in a shutdown or sale, acting like the proceeds left after paying off a mortgage and closing costs on a sold house.

proxy solicitation regulatory

"prohibiting any proxy solicitation or other campaigns"

Proxy solicitation is the process of asking shareholders for permission to vote their shares on corporate matters, usually by sending voting forms or requests by mail, email or phone. Investors should watch proxy solicitations because they signal attempts to change control, influence board elections or approve big deals — like neighbors organizing votes on a shared building project — and the outcome can materially affect a company’s strategy and stock value.

form 8-k regulatory

"as an exhibit to a Current Report on Form 8-K"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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.

The agreed purchase price for the TruPS is $11.049 million, plus accumulated distributions through the date of the repurchase. The Company will record a gain from the repurchase in the fourth quarter of 2026, representing the difference between the $15.0 million carrying value of the TruPS and the cost to acquire.

This repurchase is in addition to the Company’s significant return of capital to common shareholders. Since 2022, the Company has repurchased $40.6 million of common stock and paid $44.1 million in dividends, for a combined capital return of approximately $84.7 million. This includes approximately $23.6 million returned to common shareholders through buybacks and dividends in the current year.

“This transaction is expected to be immediately accretive and delivers compelling value for our common shareholders,” said Andrew Murstein, President and CEO of Medallion. “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.”

“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,” Murstein continued. “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.”

“We invested in Medallion because we believed the business had tremendous potential,” said 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.”

The transaction is subject to customary closing conditions and is expected to close within thirty days. The Purchase Agreement will be filed with the U.S. Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K.

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (swimming pools, replacement roofs, and windows. Medallion Financial Corp. is headquartered in New York City, New York, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth and our growth strategy. These statements are often, but not always, made using words or phrases such as “will,” “expects,” “expected,” “believe” and “continue,” or the negative versions of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to the consummation and anticipated financial effects of the TruPS repurchase and the Company’s future business and financial prospects. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, including inflation, the risk of recession and tariffs, as well as the Company’s operations, financial performance and prospects, constitute forward-looking statements and are subject to the risk that actual impacts may differ, possibly materially, from what is reflected in those statements due to factors and future developments that are uncertain, unpredictable and, in many cases, beyond Medallion’s control. For a description of certain risks to which Medallion is or may be subject, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2025 Annual Report on Form 10-K.

Company Contact:
Investor Relations
InvestorRelations@medallion.com
212-328-2176

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What price will Medallion Financial pay to repurchase the trust preferred securities?

Medallion will pay $11.049 million, or 73.66% of face value, plus accumulated distributions through the repurchase date. The securities held by BIMIZCI Fund have a liquidation amount of $15.0 million.

When will Medallion Financial close the trust preferred securities repurchase?

Medallion expects the repurchase to close within thirty days. The transaction is subject to customary closing conditions, and the company will record the repurchase gain in the fourth quarter of 2026.