Sila Realty Trust Announces New $250 Million Unsecured Term Loan
Sila Realty Trust Inc., a net lease real estate investment trust focused on investing in healthcare properties across the continuum of care, announced the closing of an amended and restated term loan agreement. The term loan initially matures March 2027, and includes two 12-month extension options that can be exercised at the REIT’s election.
The term loan, which was fully funded at closing, is made up of aggregate commitments of $250 million, which may be increased through an accordion feature, subject to lender approval, to an aggregate amount of up to $500 million. The term loan was entered into to replace the REIT’s prior term loan agreement, which was due to mature in December 2024. It was paid off in its entirety upon closing of the new term loan, which bears interest at an annual rate of term secured overnight financing rate or daily simple SOFR, at the REIT’s election, plus an applicable margin ranging from 1.25% to 1.90%, depending on the REIT’s leverage. The term loan is fully hedged through interest rate swap agreements, yielding an all-in rate of 2.3%, through December 2024.
The REIT, headquartered in Tampa, Fla., entered into the term loan with Truist Bank as the administrative agent, and Truist Securities Inc., Wells Fargo Securities LLC, and BofA Securities Inc. as joint lead arrangers and joint book runners. The Huntington National Bank, Renasant Bank, and Hancock Whitney Bank acted as co-documentation agents.
“We are pleased to announce the closing of the new term loan during these more challenging times in the debt capital markets, as underwriting standards have tightened and deal activity has slowed,” stated Kay C. Neely, executive vice president and chief financial officer.
“Our long-term relationships with our lenders, as well as their belief in our strong credit quality, resulted in an oversubscribed syndication. We sincerely appreciate the continued support of our lenders and their confidence in our company,” added Neely.
As of Dec. 31, 2023, Sila Realty Trust owned 131 real estate properties and two undeveloped land parcels located in 62 markets across the United States.
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