Business Context and Reporting Period
Company: Medallion Financial Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: April 28, 2011
Reporting Period: Events occurring on April 28, 2011, and an amendment dated May 1, 2011.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or overall liquidity metrics. It discloses specific debt facility terms and director compensation adjustments.
- Debt Facility: Medallion Funding LLC (wholly-owned subsidiary) maintains a Revolving Secured Line of Credit with New York Commercial Bank.
- Principal Amount: Up to $8 million.
- Maturity Date: Extended to May 1, 2012 (previously March 6, 2006 note).
Material Changes
Director Compensation Increase
Effective April 28, 2011, the Board of Directors approved increased fees for directors:
- Annual Retainer: $38,500
- Board Meeting: $3,850
- Special Meeting: $3,850
- Telephonic Board Meeting: $1,100
- Committee Meetings: Ranging from $1,650 (Compensation & Nominating) to $3,300 (Audit).
- Chairperson Fees: $1,650 (General) and $2,200 (Audit Committee).
- Subsidiary Board Meetings: $1,485 per meeting for Medallion Funding LLC, Medallion Capital, Inc., and Freshstart Venture Capital Corp.
Debt Amendment
Medallion Funding LLC entered into an amendment to its credit facility, extending the maturity date by approximately one year to May 1, 2012.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard disclosure of the debt amendment and compensation changes.
Investor Verification Checklist
- Verify the impact of the increased director fees on total corporate expenses in the next quarterly report.
- Confirm the current utilization rate of the $8 million revolving credit line with New York Commercial Bank.
- Review the terms of the "Amended and Restated Revolving Secured Line of Credit" to understand collateral requirements and interest rate structures.
- Check subsequent filings for any further amendments to the debt facility maturing May 1, 2012.