Medallion Financial Corp. (NASDAQ: MFIN) completed a private placement of $75 million in senior unsecured notes to institutional investors led by JP Morgan Investment Management Inc., the company announced.

The notes carry a fixed interest rate of 8.25% per year, paid semi-annually, and mature on May 1, 2031. Egan-Jones assigned the notes an investment grade rating of A-.

The specialty finance company plans to use proceeds to support its consumer and commercial lending segments and for general corporate purposes. Medallion originates and services loans across various consumer and commercial industries and offers loan origination services to fintech partners.

"We are pleased to announce the closing of this latest private placement as we expand our capital abilities and continue to grow our businesses," said Andrew Murstein, President and CEO of Medallion.

Piper Sandler & Co. served as sole placement agent for the offering. The notes were not registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

Medallion Financial and its subsidiaries originate and service consumer loans and mezzanine loans in industries including recreation and home improvement. The company is headquartered in New York City, with its largest subsidiary, Medallion Bank, based in Salt Lake City, Utah.