The Florida Peninsula Insurance family of companies has closed on $70 million in lines of credit for seniors.
The transaction lead was Regions Bank, followed by Synovus, which was the joint lead arranger,
The facilities consisted of a $40 million term loan, a $20 million deferred withdrawal term loan and a $10 million line of credit.
$40 million of the loan has been appropriated to refinance a previous senior credit facility and subordinated notes. The delayed draw loan will finance growth at Florida Peninsula and its wholly owned subsidiary Edison Insurance Company.
Together, Florida Peninsula and Edison insure more than 186,000 policyholders across Florida with $670 million in GWP.
Both firms are among the few insurers in Florida with positive revenue in both 2021 and 2022, even after Hurricane Ian and other recent storms.
Data released by the Florida Office of Insurance Regulation in December 2022 showed that Hurricane Ian has cost insurers nearly $12.6 billion.
Gary Cantor, Florida Peninsula’s chief financial officer, said, “We are pleased that this refinancing will reduce our borrowing costs and consolidate our loans under one primary line of credit. The additional $30 million will be withdrawn over the next 18 months to help fund planned policy and premium growth. We welcome the opportunity to partner with Regions Bank and the new Synovus corporate and investment banking group as we advance our business plan and work to continue to differentiate our company in the Florida homeowners market.”
In addition, Leo Loughhead, director of Regions’ Financial Services Group, said the financial services provided by the bank reflect Regions’ strategic and consultative approach to customer service.
“At Regions, we are committed to leveraging our industry experience and financial insights to offer customized financial solutions,” he said.
“Every day, our bankers work to support short- and long-term business growth goals for clients in Florida and beyond. The result is that our clients can, in turn, benefit from strategic financial solutions and guidance backed by teams of professionals who are focused on client success.”
Jeff Nicolosi, Head of Synovus’ Financial Institutions Group, added: “Synovus is delighted to partner with Florida Peninsula and Regions on this important transaction. This deal highlights the capital and strategic advice that our corporate and investment banking team, which includes the financial institutions group, can provide to high-growth clients throughout the Southeast and across the country.”