Business Context and Reporting Period
Medallion Financial Corp. filed this Form 8-K on January 28, 2011, to report the entry into a material definitive agreement and the creation of a direct financial obligation. The company is incorporated in Delaware and maintains its principal executive offices in New York, New York.
Key Financial Metrics and Obligations
This filing does not report revenue, profit, cash flow, or margin data. The primary financial metric disclosed is a new credit facility:
- Revolving Credit Note: Executed a Substitute Revolving Credit Note for up to $20 million in principal amount.
- Lender: Sterling National Bank.
- Loan Maturity: The maturity date of the existing Loan and Security Agreement was extended to June 30, 2011.
Material Changes
The material change reported is the Fifteenth Amendment to the Loan and Security Agreement originally dated April 26, 2004. This amendment extended the maturity date of the facility and was accompanied by the execution of the new $20 million Substitute Revolving Credit Note.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or specific risk factors beyond the standard disclosure of the new debt obligation. The text notes that the descriptions of the Amendment and the Note are qualified in their entirety by reference to the attached exhibits.
Investor Verification Checklist
- Verify the specific interest rate and fees associated with the new $20 million Substitute Revolving Credit Note (Exhibit 4.1).
- Review the covenants and conditions in the Fifteenth Amendment to the Loan and Security Agreement (Exhibit 10.1).
- Confirm the company's ability to repay or refinance the obligation by the new maturity date of June 30, 2011.
- Check subsequent filings for any drawdowns on the $20 million revolving credit facility.