Southland Holdings (NYSE: SLND) details $30M surety funding and financing talks
Rhea-AI Filing Summary
Southland Holdings, Inc. reports that Berkshire Hathaway Specialty Insurance Company, one of its surety providers, has agreed to advance up to $30 million in surety funds to pay bonded construction contract obligations and keep related projects progressing. Beginning on December 22, 2025, the surety has already advanced approximately $14 million under a general indemnity agreement, and Southland is obligated to indemnify and reimburse the surety for these amounts.
The company is working with Callodine Commercial Finance, LLC, as agent, and the lenders under its Term Loan and Security Agreement dated September 30, 2024, as amended on March 3, 2025, to determine how these surety advances affect that credit agreement. Southland is also in discussions with its sureties and lenders about additional surety funding and a long-term financing arrangement, but states there can be no assurance that any further funding or long-term financing resolution will be reached.
Positive
- None.
Negative
- Reliance on surety advances and financing uncertainty: Southland discloses that it has received approximately $14 million of surety advances under an indemnity agreement and is seeking additional surety funds and a long-term financing arrangement, while warning there can be no assurance that further funding or a long-term solution will be reached.
Insights
Southland is relying on up to $30 million of surety advances with long-term financing still uncertain.
Southland Holdings explains that Berkshire Hathaway Specialty Insurance Company has agreed to advance up to $30 million to cover bonded construction contract obligations and keep projects moving. Approximately $14 million has already been advanced beginning on December 22, 2025 under a general indemnity agreement, which requires Southland to indemnify and reimburse the surety for these amounts.
The company is evaluating with Callodine Commercial Finance, LLC, as agent, and lenders under the Term Loan and Security Agreement dated September 30, 2024 (amended March 3, 2025) how these advances interact with its existing credit agreement. It is also seeking additional surety funding and a long-term financing arrangement, but explicitly notes there is no assurance such additional funding or long-term solution will be achieved. This language highlights financing uncertainty around bonded obligations until any revised arrangements are finalized.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Charter)
| (State or Other Jurisdiction | (Commission | (IRS Employer | ||
| of Incorporation) | File Number) | Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c)) |
Securities registered pursuant to section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 8.01 Other Events.
Advancement of Surety Funds
In its industry, Southland Holdings, Inc. (the “Company”) is generally required to provide surety performance and payment bonds guaranteeing the Company’s completion of projects and guaranteeing payment to subcontractors and suppliers. Berkshire Hathaway Specialty Insurance Company, a surety provider of the Company (the “Surety”) has agreed to advance up to $30 million in funds (the “Surety Funds”) under a general indemnity agreement (“GIA”) for the payment of bonded construction contract obligations and for the continued progress of such projects.
Beginning on December 22, 2025 and through the date of this filing, pursuant to a GIA between the Company and the Surety, the Surety has advanced approximately $14 million. As a result, the Company is obligated to indemnify and reimburse the Surety for such Surety Funds. The Company is actively working with Callodine Commercial Finance, LLC, as agent (“Agent”), and the lenders party to the Term Loan and Security Agreement dated September 30, 2024, as amended by the First Amendment dated March 3, 2025 (the “Credit Agreement”) to determine the impact that the advancement of the Surety Funds has on the Credit Agreement.
Additionally, the Company is actively working with the sureties, the Agent, and the lenders party to the Credit Agreement for the advancement of additional surety funds to ensure the payment of bonded construction contract obligations and a long-term financing arrangement. There can be no assurances that a resolution for the advancement of additional surety funds or a long-term financing arrangement will be reached.
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: December 31, 2025 | SOUTHLAND HOLDINGS, INC. | ||
| By: | /s/ Frank S. Renda | ||
| Name: | Frank S. Renda | ||
| Title: | President and Chief Executive Officer | ||
2
FAQ
What did Southland Holdings (SLND) disclose about surety funding?
Southland Holdings disclosed that Berkshire Hathaway Specialty Insurance Company, one of its surety providers, has agreed to advance up to $30 million to pay bonded construction contract obligations and support continued project progress.
How much of the surety funds has Southland Holdings received so far?
Beginning on December 22, 2025 and through the date of the report, Southland Holdings has received approximately $14 million in surety funds under the general indemnity agreement.
What obligation does Southland Holdings have regarding the surety funds?
Under the general indemnity agreement, Southland Holdings is obligated to indemnify and reimburse Berkshire Hathaway Specialty Insurance Company for all surety funds that have been advanced.
How does the surety funding affect Southland Holdings existing credit agreement?
The company is working with Callodine Commercial Finance, LLC, as agent, and the lenders under its Term Loan and Security Agreement dated September 30, 2024, as amended on March 3, 2025, to determine the impact of the surety fund advances on that credit agreement.
Is Southland Holdings seeking additional financing beyond the current surety advances?
Yes. Southland Holdings is working with its sureties, the agent, and the lenders under the credit agreement to pursue the advancement of additional surety funds and a long-term financing arrangement.
Did Southland Holdings guarantee that it will obtain additional surety funds or long-term financing?
No. The company specifically states that there can be no assurances that a resolution for the advancement of additional surety funds or a long-term financing arrangement will be reached.