Sila Realty Trust Secures $600M Credit Facility

By Bobby Samwell • Wednesday, February 19 10:47 • Permanent Link

Sila Realty Trust, Inc. (NYSE: SILA) has closed a new $600 million revolving credit facility, providing the company with ample liquidity for its near-term external growth objectives. The facility has an initial term of four years, maturing in February 2029, and includes two six-month extension options that can be exercised at the company’s election.

The revolving credit agreement, which may be increased through an accordion feature, subject to lender approval, to an aggregate amount up to $1.5 billion, replaces the company’s prior $500 million revolving line of credit. The prior revolving line of credit was fully undrawn, had a maturity date in February 2026, and included two six-month extension options.

Borrowings under the new revolving credit agreement may be made as base rate loans or secured overnight financing rate (SOFR) loans. The applicable margins for borrowings are adjustable based on a total leverage ratio, ranging from 0.25% to 0.90% for base rate loans, or 1.25% to 1.90% for SOFR loans.

The company's executive vice president and chief financial officer, Kay C. Neely, expressed the company's appreciation for the continued support from lenders and their confidence in Sila. Bank of America, N.A. is serving as the administrative agent of the revolving credit agreement, with BofA Securities, Inc., Truist Securities, Inc., Wells Fargo Securities, LLC, BMO Bank N.A., and The Huntington National Bank as co-syndication agents, joint lead arrangers, and joint book runners, and Citibank, N.A. as documentation agent.

As of December 31, 2024, Sila Realty Trust, Inc. owned 135 real estate properties and two undeveloped land parcels located in 65 markets across the U.S.

This new revolving credit facility represents a significant development for Sila Realty Trust, providing expanded flexibility to support the company’s ongoing commitment to creating long-term value for its shareholders. The market has reacted to these announcements by moving the company's shares -0.5% to a price of $25.11. For the full picture, make sure to review Sila Realty Trust's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.