# Medallion Financial to Repurchase $15M in Debt at Discount, Record Q4 Gain

- URL: https://stocks.freetheai.org/news/medallion-financial-to-repurchase-15m-in-debt-at-discount-record-q4-gain-ff2d26
- Published: 2026-10-19T10:00:00Z
- Category: company_news; sentiment: mixed; impact: medium
- Symbols: [NASDAQ:MFIN](https://stocks.freetheai.org/symbols/NASDAQ-MFIN)
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Medallion Financial Corp. (MFIN) has agreed to repurchase $15.0 million of its trust preferred securities for $11.049 million in cash plus accumulated distributions. The purchase price represents 73.66% of the face value, allowing the company to retire debt at a discount.

By repurchasing the obligations below carrying value, the company expects to record a gain in the fourth quarter of 2026. In addition to reducing overall debt, the deal includes an agreement where participating investor parties accept a five-year standstill and agree to exit their holdings of company shares by December 31, 2026.

The transaction is scheduled to close within 30 days. Investors will monitor the final settlement and its contribution to fourth-quarter earnings, as well as any market activity ahead of the year-end deadline for the investor group to exit its equity position.

## Key points

- Medallion Financial Corp. agreed to buy back $15.0 million in TruPS debt for $11.049 million plus accrued distributions.
- The repurchase price represents 73.66% of face value, yielding an expected fourth-quarter 2026 gain.
- Participating investor parties entered a five-year standstill and agreed to exit their shareholdings by December 31, 2026.
- The transaction is expected to close within 30 days.

## Questions and answers

### How much debt is Medallion Financial Corp. repurchasing?

Medallion Financial agreed to repurchase $15.0 million of Trust Preferred Securities for $11.049 million plus accumulated distributions, representing 73.66% of face value.

### When will the Medallion Financial debt repurchase close?

The transaction is expected to close within 30 days, with the company expecting to record a gain in the fourth quarter of 2026.

### What standstill agreement did Medallion Financial reach?

Participating investor parties agreed to a five-year standstill and will fully exit their holdings of Medallion Financial shares by December 31, 2026.