Southland, a provider of specialized infrastructure construction services, closed a $160 million senior secured term loan facility with Callodine Commercial Finance. Texas Capital Securities served as exclusive financial advisor to Southland on the transaction.
The new facility consists of a $140 million initial draw term loan and a $20 million committed delayed draw term loan, which are due in 2028. The delayed draw is a committed facility in which Southland may request all or a portion of the delayed draw to be available to the company.
From the initial total term loan proceeds of $140 million, approximately $96 million was used to refinance existing indebtedness, $37.8 million will be available for general corporate purposes and the remaining will cover costs and expenses related to the transaction. Borrowings from the new facility were used to refinance Southland’s existing revolving credit facility balance in full and certain equipment notes. Concurrently with the closing, Southland terminated its previously existing revolving credit facility.
“This new credit facility significantly strengthens Southland’s balance sheet, while offering ample financial flexibility as we execute on our plan and continue to pursue the great opportunities in our core markets,” Frank Renda, president and CEO of Southland, said.
