Standard Premium Finance Holdings, Inc. Secures Three-Year Line of Credit Agreement With First Horizon Bank

MIAMI, FL / ACCESSWIRE / December 6, 2022 / Standard Premium Finance Management Corporation, a subsidiary of Standard Premium Finance Holdings, Inc. ("Standard") SPFX last week executed an amendment to its line of credit agreement with its primary lender, First Horizon Bank, a subsidiary of First Horizon Corp. ("First Horizon") FHN. The agreement extends the term of the line of credit through November 30, 2025, and also includes favorable changes to the interest rate and financial covenants.

"We are excited to prolong our relationship with First Horizon", said William Koppelmann, CEO of Standard. "Partnering with an $89 billion dollar lender has allowed us the resources to expand aggressively throughout 2021 and 2022. By signing a three-year commitment with us, First Horizon indicates their commitment to our growth strategy and potential as a public company. We are invigorated by the opportunities that our business relationship with First Horizon will continue to produce."

Highlights of the Loan Amendment

• Three-year Maturity. Asset-based lending agreements have been generally trending towards two-year terms. A three-year term provides more stability and requires fewer company resources shopping around for lenders. A three-year term also implies a strong outlook for our company and industry in the current macroeconomic environment.
• Term SOFR Replacing Term LIBOR. As LIBOR is being phased out by June 2023, we have safeguarded from the potential volatility of acquiring a line of credit during that period. Our research concluded that a Term SOFR index rate should lead to more favorable interest rates for ourselves and our customers.
• Tiered Pricing. The interest rate on the line of credit is now priced based on our leverage ratio. We can take advantage of lower interest rates by adjusting our capital structure to include additional equity financing. Immediately upon execution, we enjoyed a lower interest rate based on the pricing tier of our current leverage ratio.
• Removal of Minimum Subordinated Debt Requirement. The new amendment adopted a minimum tangible net worth requirement in place of a minimum subordinated debt requirement, which allows us more flexibility in organizing our capital structure through equity financing. This affords us more opportunities when negotiating mergers and acquisitions with potential target companies.
• Changes to Acceptable Receivables. Definitions surrounding the acceptable receivables of the loan were slightly modified, generally in a positive manner to allow for more eligibility from our loan portfolio.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to, statements regarding our outlook for the remainder of 2022. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate", "estimate", "expect", "project", "plan", "intend", "target", "aim", "believe", "may", "will", "should", "becoming", "look forward", "could", "can have", "likely", "are confident", "outlook", and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; future performance; business; and any investments; and results of operations, including revenue, and net income. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Standard undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission, copies of which may be obtained by visiting our investor relations website at www.standardpremiuminvestors.com or the SEC's website at www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to sustain our growth rates; the effectiveness of our credit decisioning models and risk management efforts; overall economic conditions, including interest rate changes; geopolitical events, such as the Russia-Ukraine conflict; disruptions in the credit markets; our ability to retain existing, and attract new, bank partners and lenders; our ability to access sufficient loan funding; and our ability to operate successfully in a highly-regulated industry.

About Standard Premium Finance Holdings, Inc.

Standard Premium Finance Holdings, Inc. is an insurance premium finance company providing insurance premium financing solutions to businesses and individuals. With over 200 collective years of insurance premium finance experience, Standard Premium Finance is best positioned to consult and assist our valued partner agents and client base on every aspect of their insurance premium financing. Standard is an industry-leading premium finance company with annual loan originations of approximately $120 million with loans ranging from $500 to over $500,000.

For more information, please contact Media Relations at info@standardpremium.com

SOURCE: Standard Premium Finance Holdings, Inc.