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
The company is working with Callodine Commercial Finance, LLC, as agent, and the lenders under its Term Loan and Security Agreement dated
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
Southland Holdings explains that Berkshire Hathaway Specialty Insurance Company has agreed to advance up to
The company is evaluating with Callodine Commercial Finance, LLC, as agent, and lenders under the Term Loan and Security Agreement dated
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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 | ||
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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
How much of the surety funds has Southland Holdings received so far?
Beginning on
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
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.
