Sila Realty Trust, Inc.SILA
Sila Realty Trust, Inc. Debt Disclosure
Credit Facility
The Company's debt consists of a senior unsecured revolving line of credit with Bank of America, N.A., as Administrative Agent for the lenders, or the 2029 Revolving Credit Agreement, a senior unsecured amended and restated term loan agreement with Truist Bank, as Administrative Agent for the lenders, or the 2027 Term Loan Agreement, and a senior unsecured term loan with Truist Bank, as Administrative Agent for the lenders, or the 2028 Term Loan Agreement, or collectively, the Unsecured Credit Facility. The Unsecured Credit Facility consisted of the following amounts outstanding as of December 31, 2025 and December 31, 2024 (amounts in thousands):
Interest Rate | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
Variable 2029 Revolving Credit Agreement(1) | 4.91% | $ | 151,000 | $ | — | |||||||||||||||
Variable 2027 Term Loan Agreement fixed through interest rate swaps(2) | 5.11% | 250,000 | 250,000 | |||||||||||||||||
Variable 2028 Term Loan Agreement fixed through interest rate swaps(3) | 4.18% | 275,000 | 275,000 | |||||||||||||||||
| Total Unsecured Credit Facility, principal amount outstanding | 4.69% | 676,000 | 525,000 | |||||||||||||||||
| Unamortized deferred financing costs related to Unsecured Credit Facility term loans | (1,878) | (3,079) | ||||||||||||||||||
| Total Unsecured Credit Facility, net of deferred financing costs | $ | 674,122 | $ | 521,921 | ||||||||||||||||
(1)Interest rate represents the daily Secured Overnight Financing Rate, or , of 3.66% in effect on the Company’s revolving line of credit plus the applicable margin of 1.25% as of December 31, 2025.
(2)Fixed through four interest rate swaps that mature on March 20, 2029.
(3)Fixed through six interest rate swaps that mature on January 31, 2028.
Significant activities regarding the credit facility during the year ended December 31, 2025 include:
•On February 18, 2025, the Company entered into the 2029 Revolving Credit Agreement for aggregate commitments available of up to $600,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,500,000,000. The maturity date for the 2029 Revolving Credit Agreement is February 16, 2029, which, at the Company’s election, may be extended for a period of six-months on no more than two occasions, subject to certain conditions, including a payment of an extension fee. The 2029 Revolving Credit Agreement was entered into to replace the Company’s prior $500,000,000 revolving line of credit, which had a maturity date of February 15, 2026, or the 2026 Revolving Credit Agreement, with the option to extend for two six-month periods. The Company did not exercise the option to extend. Upon closing of the 2029 Revolving Credit Agreement, the Company extinguished all commitments associated with the 2026 Revolving Credit Agreement. At the Company’s election, borrowings under the 2029 Revolving Credit Agreement may be made as Base Rate loans or SOFR loans. The applicable margin for loans that are Base Rate loans is adjustable based on a total leverage ratio, ranging from 0.25% to 0.90%. The applicable margin for loans that are SOFR loans is adjustable based on a total leverage ratio, ranging from 1.25% to 1.90%. In addition to interest, the Company is required to pay a fee on the unused portion of the lenders’ commitments under the 2029 Revolving Credit Agreement at a rate per annum equal to 0.20% if the average daily amount outstanding under the 2029 Revolving Credit Agreement is less than 50% of the aggregate commitments, or 0.15% if the average daily amount outstanding under the 2029 Revolving Credit Agreement is equal to or greater than 50% of the aggregate commitments. The unused fee is payable quarterly in arrears and recorded as interest expense in the accompanying consolidated statements of comprehensive income. Additionally, upon closing of the 2029 Revolving Credit Agreement, the Company entered into a First Amendment to the 2027 Term Loan Agreement, and a Second Amendment to the 2028 Term Loan Agreement, to align certain terms and covenants to the 2029 Revolving Credit Agreement.
•In connection with entering into the 2029 Revolving Credit Agreement to replace the 2026 Revolving Credit Agreement, the Company recognized a loss on extinguishment of debt of $233,000 during the year ended December 31, 2025. The loss on extinguishment of debt was recognized in interest expense in the accompanying consolidated statements of comprehensive income.
The principal payments due on the credit facility as of December 31, 2025, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):
| Amount | ||||||||
2026 | $ | — | ||||||
| 2027 | 250,000 | |||||||
| 2028 | 275,000 | |||||||
| 2029 | 151,000 | |||||||
| 2030 | — | |||||||
| Thereafter | — | |||||||
| $ | 676,000 | |||||||
As of December 31, 2025, the maximum commitments available under the 2029 Revolving Credit Agreement were $600,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,500,000,000. As of December 31, 2025, the maximum commitments available under the 2027 Term Loan Agreement were $250,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000. As of December 31, 2025, the maximum commitments available under the 2028 Term Loan Agreement were $275,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000. The Unsecured Credit Facility has aggregate commitments available of $1,125,000,000 as of December 31, 2025. Generally, the proceeds of loans made under the Unsecured Credit Facility may be used for acquisition of real estate investments, funding of tenant improvements, developments, capital expenditures, and leasing commissions with respect to real estate, repayment of indebtedness, and general corporate and working capital purposes.
At the Company’s election, loans under the Unsecured Credit Facility may be made as Base Rate Loans or SOFR Loans. The applicable margin for loans that are Base Rate Loans is adjustable based on a total leverage ratio, ranging from 0.25% to
0.90%. The applicable margin for loans that are SOFR Loans is adjustable based on a total leverage ratio, ranging from 1.25% to 1.90%. Additionally, the 2027 Term Loan and 2028 Term Loan include a 0.10% SOFR adjustment.
The Unsecured Credit Facility contains customary financial and operating covenants, including covenants relating to a maximum consolidated leverage ratio, maximum secured leverage ratio, fixed charge coverage ratio, unsecured interest coverage ratio, minimum consolidated tangible net worth, maximum distribution/payout ratio, covenants restricting the issuance of debt, imposition of liens, and entering into affiliate transactions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 16, 2023 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.