Business Context and Reporting Period
Company: Medallion Financial Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: July 28, 2009
Event: Entry into a material definitive agreement and creation of a direct financial obligation by Medallion Funding Corp., a wholly-owned subsidiary.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or overall liquidity metrics. It specifically addresses a credit facility amendment:
- Credit Facility: Revolving Secured Line of Credit Promissory Note.
- Lender: New York Commercial Bank (successor to Atlantic Bank).
- Principal Amount: Up to $8 million.
- Interest Rate: Benchmark rate plus 50 basis points.
- Maturity Date: Extended to May 1, 2010.
Material Changes
On July 28, 2009, the subsidiary amended its existing Note dated March 6, 2006. The material changes include:
- Extension of the maturity date to May 1, 2010.
- Adjustment of the interest rate to the benchmark rate plus 50 basis points.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the terms of the amended credit agreement. The document incorporates the full text of the Amendment by reference.
Investor Verification Checklist
- Verify the current benchmark rate applicable to the 50 basis point spread.
- Confirm the outstanding principal balance under the $8 million facility.
- Review the full text of Exhibit 4.1 for collateral requirements and covenants.
- Assess the impact of the extended maturity date on the company's short-term liquidity profile.