Royalty Pharma to launch $3.6 billion credit facility on Thursday

By Sara Rosenberg

New York, July 12 - Royalty Pharma is scheduled to hold a bank meeting on Thursday to launch a $3.6 billion credit facility, according to a market source.

Bank of America Merrill Lynch, Goldman Sachs & Co. and Citigroup Global Markets Inc. are the lead banks on the deal, with Bank of America the left lead.

The facility consists of an $850 million five-year term loan at RPI Select Finance Trust along with $2.75 billion in 51/4-year and 61/4-year term loans at RPI Finance Trust, with the breakdown still to be determined, the source said.

The RPI Select Finance Trust term loan will have 10% amortization and no call protection, and the RPI Finance Trust loans will have 1% amortization and 101 soft call protection for one year, the source added.

Proceeds will be used by the newly formed borrowing entities to refinance existing debt, fund a distribution and put cash on the balance sheet.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

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