Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance
company with a leading position servicing the taxicab industry and
other niche markets announced today that is has repurchased $2,000,000
of trust preferred securities for $1,300,000. The trust preferred
securities purchased were part of a $35,000,000 private placement by a
wholly-owned trust subsidiary of Medallion Financial on June 7, 2007.
As a result of the repurchase, Medallion Financial intends to record a
$700,000 or $0.04 per share gain from extinguishment of this debt in
the 2007 fourth quarter.
Andrew Murstein, President of Medallion Financial stated, "We were
fortunate to complete the original trust preferred issuance at an
optimal time, and are fortunate that we still have the majority of
those proceeds, as well as additional cash on hand to take advantage
of this opportunity, and other opportunities such as buying back our
stock which we also recently did."
About Medallion Financial
Medallion Financial Corp. is a specialty finance company with a
leading position in the origination and servicing of loans financing
the purchase of taxicab medallions and related assets. The Company
also originates and services loans in other commercial industries and
its wholly-owned portfolio company Medallion Bank also originates and
services consumer loans. The Company and its subsidiaries have made
more than $3 billion of investments since its IPO.
Please note that this press release contains forward-looking
statements that involve risks and uncertainties relating to business
performance, cash flow, costs, sales, net investment income, earnings,
and growth. Medallion´s actual results may differ significantly from
the results discussed in such forward-looking statements. Factors that
might cause such a difference include, but are not limited to, those
factors discussed under the heading "Risk Factors" in Medallion´s 2006
Annual Report on Form 10-K.