Florida Peninsula Closes $70M in Senior Credit Facilities

The Florida Peninsula Insurance group of companies has completed $70 million in senior credit facilities.

Regions Bank led the transaction, followed by Synovus, the joint lead arranger,

The facilities consisted of a $40 million term loan, a $20 million delayed draw term loan and a $10 million line of credit.

$40 million of the loan has been allocated to refinance a previous senior debt facility and subordinated debt. The delayed draw loan will fund the growth of Florida Peninsula and its wholly owned subsidiary Edison Insurance Company.

Together, Florida Peninsula and Edison insure over 186,000 policyholders across Florida with a GWP of $670 million.

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Both companies are among the few Florida insurers with positive earnings in both 2021 and 2022, even after Hurricane Ian and other recent storm events.

Data released in December 2022 by the Florida Office of Insurance Regulation showed Hurricane Ian cost insurers nearly as much as $12.6 billion.

Florida Peninsula Chief Financial Officer Gary Cantor said, “We are pleased that this refinancing reduces our borrowing costs and consolidates our debt under one senior credit facility. The additional $30 million will be drawn down over the next 18 months to help fund planned policy and premium growth. We value the opportunity to work with Regions Bank and Synovus’ new corporate and investment banking group as we advance our business plan and work to further differentiate our company in the Florida homeowner market.”

In addition, Leo Loughhead, head of Regions’ Financial Services Group, said the financial services offered by the bank reflect Regions’ strategic and consultative approach to customer service.

“At Regions, we are committed to leveraging our industry experience and financial expertise to deliver tailored financial solutions,” he said.

“Our bankers work every day to support both short-term and long-term growth goals for clients across Florida and beyond. The result is that our clients, in turn, can benefit from strategic financial advice and solutions, backed by teams of experts focused on client success.”

Jeff Nicolosi, Head of Financial Institutions Group at Synovus added, “Synovus is delighted to be working with Florida Peninsula and Regions on this important transaction. This transaction underscores the capital and strategic advice that our corporate and investment banking team, which includes Financial Institutions Group, can deliver to high-growth clients throughout the Southeast and across the country.”

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