Business Context and Reporting Period
Company: Medallion Financial Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: July 1, 2010
Event: Entry into a material definitive agreement and creation of a direct financial obligation.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general liquidity metrics. It specifically addresses a financing transaction:
- Debt Instrument: Substitute Revolving Credit Note.
- Principal Amount: Up to $20 million.
- Lender: Sterling National Bank.
- Agreement Date: July 1, 2010.
Material Changes
The company amended its existing Loan and Security Agreement (originally dated April 26, 2004). The primary material change is the extension of the Loan Agreement's maturity date to October 1, 2010. Concurrently, the company executed the new Note to secure up to $20 million in principal.
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 descriptions of the Amendment and Note are qualified by reference to the full exhibits attached to the filing.
Investor Verification Checklist
- Verify the terms of the "Twelfth Amendment to Loan and Security Agreement" (Exhibit 10.1) for interest rates and covenants.
- Review the "Substitute Revolving Credit Note" (Exhibit 4.1) for repayment schedules and collateral requirements.
- Confirm the company's ability to meet the new maturity date of October 1, 2010.
- Check subsequent filings for the actual drawdown amount against the $20 million principal limit.