Royalty Pharma launches $1.5 billion term B-4 at Libor plus 300-325 bps, OID of 99˝

By Sara Rosenberg

New York, Dec. 1 – Royalty Pharma launched on Monday its $1.5 billion term loan B-4 with price talk of Libor plus 300 basis points to 325 bps with a 0.75% Libor floor and an original issue discount of 99˝, according to a market source.

The loan has 101 soft call protection for one year, the source said.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to repay short-term debt that was used to fund the acquisition of royalties on Vertex Pharmaceuticals’ cystic fibrosis treatments owned by Cystic Fibrosis Foundation Therapeutics.

The acquisition cost was $3.3 billion in cash.

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

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