ZimCal founder Stephen Hodges says the negotiated agreement concludes the firm's Medallion investment and returns the firm's focus to its core credit strategy.
Agreement provides for Medallion’s purchase of ZimCal’s trust preferred securities and the disposition of Medallion stock controlled by ZimCal.
MINNEAPOLIS, Oct. 19, 2026 (GLOBE NEWSWIRE) -- ZimCal Asset Management LLC and BIMIZCI Fund LLC (collectively, “ZimCal”) today announced that they have entered into a Purchase and Settlement Agreement with Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), under which Medallion has agreed to purchase from BIMIZCI $15,000,000 in aggregate liquidation amount of the trust preferred securities issued by Medallion Financial Statutory Trust I, due 2037, for a cash purchase price of $11,049,000 plus accrued and unpaid distributions through the closing date.
Under the agreement, ZimCal and its affiliates have also agreed to dispose of their remaining shares of Medallion common stock by December 31, 2026. The agreement contains customary standstill, mutual non-disparagement and non-litigation provisions, together with the withdrawal of certain campaign materials relating to the Company’s 2024 and 2026 annual meetings. The purchase is expected to close promptly following execution, subject to customary closing conditions.
“We invested in Medallion because we believed the business had tremendous potential,” said Stephen Hodges, Founder of ZimCal Asset Management LLC. “Our recent discussions with Medallion management were constructive and productive, and we reached a mutually acceptable resolution that we believe serves the interests of all stockholders and allows both parties to move forward. We wish the Company and its stockholders well. ZimCal’s focus now returns to the esoteric value-credit opportunities the firm has pursued since 2015.”
Background
ZimCal has been invested in Medallion Financial Corp. since February 2021, when BIMIZCI Fund LLC acquired the trust preferred securities that are the subject of the agreement; BIMIZCI has held those securities continuously since that time. ZimCal and its affiliates have held common stock since December 2023.
About Stephen Hodges
Stephen Hodges founded ZimCal Asset Management, an alternative investment firm, in 2015 following more than twelve years in banking and credit investing. He focuses on stressed and distressed credit and special situations, with a particular specialization in FDIC-insured financial institutions. Learn more at www.zimcal.com/stephen-hodges
About ZimCal Asset Management LLC
ZimCal Asset Management is an alternative investment firm focused on niche, illiquid and complex credit investment opportunities mostly acquired in the secondary market. The firm invests across the capital structure, including senior debt, second lien debt, subordinated debt, preferred equity, common equity, structured credit and liquidations, and restructurings, with an investment bias toward stressed and distressed credit and special situations. ZimCal is investment-agnostic with respect to industry, collateral and structure and primarily targets private, credit investments of $5 million to $15 million. www.zimcal.com.
Media contact: nicole@nh-consult.com
