Medallion Financial Announces Agreement for Purchase of $31.1 Million Taxicab Medallion and Commercial Loan Portfolio
2008-07-17 09:28:00
NEW YORK–(EMWNews)–Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company
with a leading position servicing the taxicab industry and other niche
markets, announced that its wholly owned subsidiary, Medallion Bank, has
agreed to purchase substantially all of Elk Associates Funding
Corporation’s taxicab medallion loans for
approximately $29.1 million. Another subsidiary of Medallion Financial,
Freshstart Venture Capital Corp., will purchase certain other small
business loans at the closing for approximately $2.0 million. The
transaction is subject to customary closing conditions, and is subject
to certain terms and conditions, including approval by the shareholders
of Ameritrans Capital Corporation, the parent company of Elk. The
transaction is expected to close no later than October 15, 2008.
Andrew Murstein, President of Medallion Financial stated, “We
are very pleased to have this opportunity to purchase a strong portfolio
of medallion loans which helps us further solidify our position as the
medallion lending market leader. Taxicab medallions have proven to be a
remarkable asset class to lend against. Medallion values have long
thrived in a market similar to the one we are currently in and prices
have recently hit all time highs of more than $635,000 per medallion in
New York City. We have acquired more than six medallion lenders or
portfolios since our initial public offering. We are happy to have added
loans of this outstanding credit quality through the years, and look
forward to adding to a portfolio with an outstanding track record for
safety and profitability.”
John Taggart, President of Medallion Bank stated, “We
are very pleased with this transaction and it has been a pleasure to
work with an organization like Ameritrans. We believe that following the
closing, we will be well positioned to capitalize on the new borrower
base we will be acquiring in connection with this purchase. This
acquisition will be immediately accretive to our earnings.”
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 other commercial loans in targeted niche
industries and its wholly owned portfolio company Medallion Bank also
originates and services consumer loans. The Company and its
subsidiaries have lent over $3 billion.
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
2007 Annual Report on Form 10-K.
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Medallion Financial Corp. D. Hall, CFO Relations |
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