Medallion Financial: Stock and Notes At New Low
Last week, the BDC Reporter pointed out that Medallion Financial’s (MFIN) stock had reached a new 10 year low.
At the close on January 26th, MFIN was at $2.68.
In intra-day trading on Monday January 30th, the slide continues and has reached $2.60.
BABY BOND DOWN
Also notable is that the taxi medallion oriented BDC’s Unsecured Note with the ticker MFINL is also hurting.
At time of writing MFINL was at $16.00 a share, from a par price of $25.0.
MFINL dropped very sharply back at the time of the last 10-Q, dropping from $22.10 at the close on November 16th to as low as $13.20 two days later.
Volume was very high for a small publicly traded “baby bond”.
Since then,though, MFINL has rallied back to as high as $20.00.
Today’s price for the Note is the lowest in two months.
CURIOUSER AND CURIOUSER
Just in case that is not enough, there’s a strange story in Debtwire about a former fashion model supposedly inappropriately promoting the company.
We offer up a link to the convoluted story run by Debtwire Investigations: an “editorial initiative brought to you by a hand-picked group of some of our best and brightest investigative journalists”.
It’s doubtful that the story has anything to do with the stock price slide, but the article does cover many of the challenges facing the BDC.
What’s more, it’s a ripping yarn, full of dead ends and uncertainties.
BOTTOM LINE FOR SHAREHOLDERS AND NOTE HOLDERS
Let’s be careful out there.