Royalty Pharma reveals price talk on $3.6 billion credit facility

By Sara Rosenberg

New York, July 14 - Royalty Pharma came out with price talk on its $3.6 billion credit facility as the deal was launched with a bank meeting on Thursday, according to a market source.

The $850 million five-year term loan at RPI Select Finance Trust is being talked at Libor plus 225 basis points with no Libor floor, the $1.375 billion 51/4-year term loan at RPI Finance Trust is being talked at Libor plus 275 bps with a 1% Libor floor and an original issue discount of 993/4, and the $1.375 billion 61/4-year term loan at RPI Finance Trust is being talked Libor plus 300 bps with a 1% Libor floor and an original issue discount of 991/2, the source said.

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

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.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.