Southland Holdings, Inc. (NYSE American: SLND) announced it has entered into a Financial Assistance Agreement and a Second Amendment to its Credit Agreement with certain surety partners, both executed on August 13, 2026.

The Financial Assistance Agreement carries a retroactive effective date of October 1, 2025. Under its terms, Bonding Surety Financing bears interest at 4% per annum, with accrued interest capitalized annually. As of June 30, 2026, total Bonding Surety Financing stood at $58.97 million, while Non-Bonding Financing totaled $150.86 million.

The agreement provides for the conversion of up to $150.86 million in Non-Bonding Financing into senior non-voting preferred shares, to be issued no later than September 30, 2026. The preferred shares carry a stated value of $1,000 per share, rank senior to all other equity classes, have a perpetual maturity, and are not convertible into other securities. The final preferred share amount will be adjusted based on actual project losses, capped at 50% of actual loss per surety panel.

The remaining Non-Bonding Financing not converted to preferred shares will constitute unsecured, interest-free indebtedness not subject to mandatory amortization, though the company is required to make specified payments including 5% of annual operating cash flow.

Under the Second Amendment to the Credit Agreement, which carries a retroactive effective date of March 17, 2026, the interest rate on the outstanding $96.4 million credit balance has been reduced to 4% per annum, paid in-kind through capitalization rather than cash. Previously, the rate was 7.25% plus the higher of 90-day Term SOFR plus a 0.15% credit adjustment spread or a 3% floor. Quarterly amortization payments, early termination premiums, and certain financial maintenance covenants, including minimum liquidity and minimum EBITDA requirements, have been suspended.

Southland's President and CEO Frank Renda said the agreements "provide us with greater flexibility to execute" the company's strategic plan.

Full details are available in the Form 8-K filed with the SEC on August 13, 2026.