Royalty Pharma $700 million term B add-on launches at Libor plus 225 bps, OID 99

By Sara Rosenberg

New York, Dec. 6 - Royalty Pharma's $700 million add-on to its term loan B (BBB-) was launched to investors on Thursday with price talk of Libor plus 225 basis points and an original issue discount of 99, according to a market source.

Prior to the launch, spread guidance on the add-on was heard to be Libor plus 200 bps to 225 bps.

Bank of America is the lead bank on the deal.

Proceeds will be used for acquisition financing.

In connection with the add-on, the company will increase pricing on its existing term loan B to Libor plus 225 bps from current pricing of 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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