Business Context and Reporting Period
Company: Medallion Financial Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: July 8, 2009
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 liquidity ratios. The primary financial metric disclosed is a new credit facility:
- New Credit Facility: Substitute Revolving Credit Note for up to $20 million in principal amount.
- Lender: Sterling National Bank.
- Existing Debt Maturity Extension: The maturity date of the existing Loan and Security Agreement (originally dated April 26, 2004) was extended to September 30, 2009.
Material Changes
The material change reported is the amendment of the company's existing Loan and Security Agreement. Specifically:
- Extension of the loan maturity date to September 30, 2009.
- Execution of a new Substitute Revolving Credit Note to secure up to $20 million in funding.
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 document focuses solely on the legal execution of the amendment and the note.
Investor Verification Checklist
- Verify the terms of the Eighth Amendment to the Loan and Security Agreement (Exhibit 10.1) for interest rates and covenants.
- Confirm the utilization status of the new $20 million revolving credit note (Exhibit 4.1).
- Assess the company's ability to repay or refinance the debt maturing on September 30, 2009.
- Review subsequent filings for any further amendments to the loan agreement given the short time remaining until the new maturity date.