Slide Insurance Secures $175 Million Senior Credit Facility

Rhea-AI Summary

Slide Insurance announced securing a $175 million senior credit facility, led by Regions Bank, Synovus Bank, and Texas Capital Bank. This funding will be used to refinance a previous facility and support growth initiatives. CEO Bruce Lucas highlighted the milestone as a testament to Slide's financial strength and commitment to providing affordable insurance solutions. The company has also completed a $1.86 billion reinsurance program and a $210 million catastrophe bond, securing robust protection for the upcoming hurricane season. Slide maintains a strong financial stability rating of 'A' from Demotech.

Positive

• Slide Insurance secured a $175 million senior credit facility.
• Funding supports organic and inorganic growth initiatives.
• Completed a $1.86 billion reinsurance program for the 2024 hurricane season.
• Finalized a $210 million catastrophe bond, enhancing reinsurance protection.
• Maintains an 'A' rating from Demotech Financial Stability.

Negative

• None.

Insights

Financial Analyst

Slide Insurance's recent $175 million senior credit facility underscores its robust financial health and long-term strategic goals. The credit facility, led by Regions Bank and supported by Synovus Bank and Texas Capital Bank, enables Slide to refinance existing debt and inject additional capital for growth initiatives. These actions are indicative of a strong financial position that could enhance investor confidence.

The use of the funds to refinance an existing bilateral senior credit facility indicates a strategic move to optimize interest rates and repayment terms, which is a sound financial maneuver. This should, in theory, free up more of the company's cash flow to be used for growth initiatives, rather than debt servicing. For a retail investor, this suggests management is proactive in leveraging favorable financing conditions, which is a positive signal.

Beyond refinancing, the incremental capital aimed at organic and inorganic growth can potentially spur revenue expansion. However, investors should critically evaluate how effectively these funds are allocated, especially in a capital-intensive sector like insurance. The emphasis on growth could translate to higher returns, but also comes with inherent risks associated with scaling operations.

Insurance Industry Expert

Slide’s $175 million credit facility aligns with its recent strategic financial moves, including a significant $1.86 billion reinsurance program and a $210 million catastrophe bond. These are essential financial buffers, especially given the company's exposure to natural calamities like hurricanes. Securing such large-scale financing demonstrates Slide's commitment to maintaining a strong financial foundation, essential for meeting regulatory standards and ensuring policyholder trust.

The company's recent cat bond issuance solidifies its risk management framework, which protects it against extensive losses from severe weather events. The cat bond's expansive coverage emphasizes Slide’s foresight in safeguarding against unpredictable weather patterns—critical for an insurer operating in hurricane-prone regions like Florida and South Carolina.

Maintaining a Demotech Financial Stability rating of “A” (Exceptional) further assures investors of Slide's financial stability. This stability is important for an insurance firm, as it directly impacts its ability to honor claims and grow its market share. For retail investors, these moves suggest a solid defensive strategy paired with growth ambition, which are positive indicators for long-term stability and potential profitability.

TAMPA, Fla.--(BUSINESS WIRE)-- Slide Insurance announced today that it has secured a $175 million senior credit facility led by Regions Bank in its capacity as Administrative Agent, Joint Lead Arranger, and Joint Bookrunner. Synovus Bank and Texas Capital Bank, through its TCBI Securities Inc. division, also supported the transaction as a Joint Lead Arranger and Joint Bookrunner.

Use of proceeds for the transaction includes refinancing a bilateral senior credit facility previously provided by Regions, in addition to providing incremental capital to support various organic and inorganic growth initiatives.

“This is a significant milestone for Slide and further demonstrates our strong financial strength and solvency,” said Bruce Lucas, Founder and CEO of Slide Insurance. “We are continuing to grow the company while offering affordable, and much needed, solutions to our policyholders. This is one of the largest loans ever made to a Florida insurer and will provide additional reserve capital to continue our growth trajectory.”

Over the past few months, Slide has completed several deals to solidify its financial strength heading into hurricane season and the second half of 2024. In May, Slide announced the successful completion of its $1.86 billion reinsurance program for the 2024 Atlantic hurricane season, exceeding all regulatory and rating agency requirements and protecting the insurance company to the 175-year return period.

In April, Slide finalized pricing for its $210 million Purple Re Ltd. (Series 2024-1) catastrophe (cat) bond, expanding the company’s Florida and South Carolina named storm and hurricane reinsurance protection. Slide has earned and maintained a Demotech Financial Stability rating of “A” (Exceptional).

About Slide

Slide is a technology-enabled insurance company that makes it easy for modern consumers to choose the right coverage for their unique needs and budgets. Slide's cutting-edge technology leverages artificial intelligence and big data to optimize and streamline every part of the insurance process. Based in Tampa, FL the company was founded by Bruce and Shannon Lucas, insurance insiders with a deep understanding of how technology can be applied to achieve better underwriting outcomes. Slide launched operations in February 2022 and has quickly grown to become a leading coastal P&C insurance company.

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $155 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627725643/en/

Rachel Carr

Chief Marketing Officer, Slide Insurance

press@slideinsurance.com

Source: Slide Insurance

FAQ

What is the amount of the senior credit facility secured by Slide Insurance?

Slide Insurance secured a $175 million senior credit facility.

Who led the senior credit facility for Slide Insurance?

The senior credit facility was led by Regions Bank, with Synovus Bank and Texas Capital Bank as joint lead arrangers.

What will Slide Insurance use the $175 million senior credit facility for?

Slide Insurance will use the facility to refinance a previous credit facility and support growth initiatives.

What recent financial activities has Slide Insurance completed?

Slide Insurance completed a $1.86 billion reinsurance program and a $210 million catastrophe bond.

What is Slide Insurance's financial stability rating?

Slide Insurance has a Demotech Financial Stability rating of 'A'.