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January 10, 2005
Medallion Financial Announces Credit Facility Renewal
- Facility Increased from $250,000,000 to $325,000,000
- Interest Rate Significantly Reduced
- Facility Extended to September 2006
NEW YORK, N.Y., January 10, 2005 -- Medallion Financial Corp. (NASDAQ: TAXI), a specialty commercial finance company with a leading position servicing the taxicab industry and small business commercial and consumer lending, announced today that it has amended its credit facility agreement with Merrill Lynch Commercial Finance Corp., which significantly improves the existing facility. The facility covers taxicab medallion lending in New York City as well as other cities throughout the United States.
Andrew Murstein, President of Medallion Financial stated, "We could not be more pleased with this amendment. The facility has been substantially improved in many areas, including an increased commitment amount, lower interest rates and renewal fees, and an extension of the term of the facility. This is a reflection of how well Medallion has performed under the facility to date, and of the continued strength of both the taxicab medallion industry and Medallion Financial as a company."
Mr. Murstein continued, "From day one, this has been an outstanding partnership with Merrill Lynch. We look forward to continuing our relationship for many years to come."
Larry Hall, Medallion's Chief Financial Officer, stated, "Since we established the facility in September 2002, New York City taxicab medallion prices have gone up over 55%, we have grown our medallion loan portfolio by more than 70%, and the market price for our stock has increased almost 100%. This amended credit facility insures us the capital necessary to grow the portfolio and improve our profitability in the periods ahead."
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 commercial and consumer loans financing small businesses and targeted industries. The Company and its subsidiaries have lent over $2 billion to small businesses.
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 "Investment Considerations," in Medallion's 2003 Annual Report on Form 10-K.
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