Business Context and Reporting Period
Company: Medallion Financial Corp.
Filing Type: Form 8-K (Current Report)
Report Date: June 30, 2008
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 Loan Maturity Extension: Extended to August 31, 2008.
Material Changes
On June 30, 2008, the company amended its existing Loan and Security Agreement (originally dated April 26, 2004) with Sterling National Bank. The material changes include:
- Extension of the maturity date of the existing Loan Agreement to August 31, 2008.
- Execution of a new Substitute Revolving Credit Note for up to $20 million.
Guidance, Outlook, and Risks
The filing text does not provide management commentary, future guidance, or specific risk factors beyond the disclosure of the new financial obligation. The filing serves strictly to disclose the amendment to the loan agreement and the creation of the new note.
Investor Verification Checklist
- Verify the terms of the $20 million Substitute Revolving Credit Note (interest rate, covenants, and repayment schedule) in Exhibit 4.1.
- Review the Extension Letter (Exhibit 10.1) for any new conditions attached to the loan maturity extension.
- Confirm the company's ability to repay the extended loan by the new August 31, 2008, maturity date.
- Check subsequent filings for any drawdowns on the new $20 million revolving credit facility.