Royalty Pharma $700 million term B add-on talked at Libor plus 200 bps to 225 bps

By Sara Rosenberg

New York, Dec. 5 - Royalty Pharma's $700 million add-on to its term loan B (BBB-) is being talked at Libor plus 200 basis points to 225 bps, according to a market source.

Bank of America is the lead bank on the deal that will be launched with a bank meeting on Thursday at 2 p.m. ET.

Proceeds will be used for acquisition financing.

In connection with the add-on, the company will have to amend its existing credit facility to allow for the new debt and plans on increasing pricing on its existing term loan B.

The existing term loan B is currently priced at Libor plus 150 bps.

Royalty Pharma is a New York-based acquirer of revenue-producing intellectual property, principally royalty interests in marketed and late-stage biopharmaceutical products.

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