Business Context and Reporting Period
Company: Medallion Financial Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: May 11, 2010
Reporting Period: The filing reports on an event occurring on May 1, 2010, regarding a material definitive agreement and the 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 credit facility amendment:
- Credit Facility: Amended Revolving Secured Line of Credit Promissory Note.
- Counterparty: New York Commercial Bank.
- Principal Amount: Up to $8 million.
- Entity: Medallion Funding LLC (wholly-owned subsidiary).
- New Maturity Date: Extended to May 1, 2011.
Material Changes Versus Prior Period
The material change reported is the extension of the maturity date for the existing revolving secured line of credit. The original Note was dated March 6, 2006. The Amendment, dated May 1, 2010, extends the maturity by one year to May 1, 2011. No other financial changes or comparative period data are provided in this document.
Guidance, Outlook, and Risks
Management Commentary: The filing contains no forward-looking guidance, outlook, or management discussion regarding future performance.
Risks and Contingencies: The filing notes the creation of a direct financial obligation through the amendment of the credit facility. The description of the Amendment is qualified in its entirety by reference to the attached exhibit (Exhibit 4.1). No specific risks or unusual items are detailed in the text of the report.
Investor Verification Checklist
- Verify the full terms of the Amendment to the Revolving Secured Line of Credit Promissory Note in Exhibit 4.1.
- Confirm the current outstanding balance under the $8 million facility to assess immediate liquidity impact.
- Review the subsidiary structure to confirm Medallion Funding LLC's relationship to the parent company's consolidated balance sheet.
- Check for any covenants or interest rate adjustments associated with the maturity extension that are not explicitly stated in the summary.