Tampa REIT secures $600 million line of credit

Sila Realty Trust, a Tampa-based REIT specializing in health care, has secured a $600 million line of credit that it may be able to increase to $1.5 billion.

The Real Estate Investment Trust announced the financing in a U.S. Securities and Exchange Commission filing Wednesday morning.

According to the filing and a follow up statement, the term for the revolving credit agreement is for four years and gives the company two six-month extension options. It replaces a $500 million line of credit set to expire February 2026.

The agreement comes with an accordion feature which allows the company to increase the line, with lender approval and the payment of an extension fee, to $1.5 billion. (An accordion feature, according Investopedia, “allows a business to increase its line of credit if necessary, often to obtain more working capital or emergency cash.”

Silas Executive Vice President and CFO Kay Neely says in the statement that the line of credit “should provide the company with ample liquidity to execute on our near-term external growth objectives.”

Sila is a “pure play” net lease health care REIT with 135 real estate properties, and two undeveloped land parcels, located in 65 markets across the U.S. According to its most recent earnings report released in November, it has $2 billion in total assets.

As for the line of credit, Sila says Bank of America is the administrative agent with BofA Securities, Truist Securities, Wells Fargo Securities, BMO Bank and The Huntington National Bank in the role of co-syndication agents, joint lead arrangers and joint book runners. Citibank is the documentation agent.