Company: SLND-WT
Filing Date: 2025-04-03
Form Type: PRE 14A
Source: 0001558370-25-004402
Chunk: 33

Company: Southland Holdings, Inc.
Filing Date: 2025-04-03
Form: PRE 14A
Chunk 33
---
-Hallum’s Underwriter Note being for a principal amount of $500,000. The Underwriter Notes bore interest at a rate of 8% per annum. The maturity date was April 14, 2024. As of December 31, 2024, all Underwriter Notes had been satisfied.

Real Estate Transaction

In July 2024, the Company closed a real estate purchase agreement to sell and leaseback three properties for $42.5 million. The Company’s Chief Executive Officer, Frank Renda, and co-Chief Operating Officer, Rudy Renda, hold a combined 25% indirect minority interest in the entity that purchased the real estate. During the year ended December 31, 2024, the Company paid $2.0 million to this related party in accordance with the real estate purchase agreement.

Secured Notes

On March 3, 2025, the Company entered into a first amendment to the Callodine Credit Agreement with Callodine Commercial Finance, LLC as administrative agent (“Administrative Agent”) and lender. This amendment removed an Administrative Agent-requested borrowing base reserve amount in exchange for certain additional reporting obligations and a personal guarantee from Frank Renda, the Company’s President and Chief Executive Officer, on any draws made on the Delayed Draw.

Policies and Procedures for the Company’s Related Party Transactions

The Company’s Code of Business Conduct and Ethics requires the Company to avoid, wherever possible, all related party transactions that could result in actual or potential conflicts of interests, except under guidelines approved by the Board (or the Audit Committee). Related-party transactions are defined as transactions in which (1) the aggregate amount involved will or may be expected to exceed $120,000 in any calendar year, (2) the Company or any subsidiary is a participant, and (3) any (a) executive officer, director or nominee for election as a director, (b) greater than 5% beneficial owner of shares of common stock, or (c) immediate family member, of the persons referred to in clauses (a) and (b), has or will have a direct or indirect material interest (other than solely as a result of being a director or a less than 10% beneficial owner of another entity). A conflict-of-interest situation can arise when a person takes actions or has interests that may make it difficult to perform his or her work objectively and effectively. Conflicts of interest may also arise if a person, or a member of his or her family, receives improper personal benefits as a