Profile: Medallion Financial Corp (TAXI.O)
28 Aug 2015
Medallion Financial Corp., incorporated on October 20, 1995, is a specialty finance company. The Company, through its subsidiaries, is engaged in originating, acquiring and servicing loans that finance taxicab medallions and various types of commercial businesses. The Company's wholly owned subsidiary, Medallion Bank, also originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, trailers, and to finance small-scale home improvements. The Company's subsidiaries include Medallion Funding LLC (Medallion Funding), the Company's primary taxicab medallion lending company; Medallion Capital, Inc. (Medallion Capital), which conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (Freshstart), which originates and services taxicab medallion and commercial loans.
The Company provides loans to individuals and small to mid-size businesses, both directly through the Company's investment company subsidiaries and also through Medallion Bank, in three primary markets: loans that finance taxicab medallions; loans that finance commercial businesses, and loans that finance various consumer purchases of recreational vehicles, boats, motorcycles, and trailers, and to finance small scale home improvements. Commercial loans finance either the purchase of the equipment and related assets necessary to open a new business or the purchase or improvement of an existing business. Through the Company's subsidiary, Medallion Capital, it originates both senior and subordinated loans to businesses in a variety of industries, including manufacturing and various service providers, more than 60% of , which are located in the Midwest and Northeast regions, with the rest scattered across the country. As of December 31, 2014, these mezzanine loans, which are primarily secured by a second position on all assets of the businesses, represented approximately 47% of the Company's managed commercial loan portfolio.
The Company's net investments, as of December 31, 2014, total $1.31 billion. The Company also provides debt, mezzanine, and equity investment capital to companies in a variety of industries. These investments may be venture capital style investments, which may not be fully collateralized.
Sources of Funds
The Company funds its lending operations through credit facilities with bank syndicates and, to a lesser degree, through equity or debt offerings or private placements, and fixed-rate, senior secured notes and long-term subordinated debentures issued to or guaranteed by the Small Business Administration (SBA). All of Medallion Bank's funding has been provided by Federal Deposit Insurance Corporation (FDIC) insured brokered certificates of deposit.
Medallion Financial Corp
437 Madison Ave 38 Th Floor
NEW YORK NY 10022