Sila Realty Trust enters $275 million term loan maturing in 2028

By Wendy Van Sickle

Columbus, Ohio, May 18 – Sila Realty Trust, Inc., Sila Realty Operating Partnership, LP and certain subsidiaries entered into a new $275 million senior unsecured term loan agreement with Truist Bank as administrative agent on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The term loan matures on Jan. 31, 2028 and may be increased to up to a total of $500 million with lender approval.

At closing, $205 million of the loan was drawn to pay down the company’s existing revolving credit facility to a zero balance. The remainder of the commitments will be available for three months following the closing date and are available in no more than three subsequent draws with a minimum of $20 million per draw or the remaining available commitments.

If the committed amount is not fully drawn within 60 days of closing, the company will pay a ticking fee of 25 basis points on the average daily amount of the undrawn portion, payable quarterly in arrears, until the earlier of the date when the commitments have been funded in full or Aug. 17.

Borrowings bear interest at SOFR plus a margin based on total leverage ratio ranging from 125 bps to 190 bps.

The company may use the proceeds of the new term loan for the acquisition of real estate investments, tenant improvements and leasing commissions, repayment of existing debt, to finance working capital needs and capital expenditures, and other general corporate purposes.

The new term loan ranks pari passu with the company’s existing $500 million revolver and $300 million term loan.

The company must comply with a maximum consolidated leverage ratio, maximum secured leverage ratio, fixed charge coverage ratio, minimum consolidated tangible net worth and maximum distribution/payout ratio.

The real estate investment trust is based in Tampa, Fla.

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