Royalty Pharma trims term loan B-4 to $700 million, lowers pricing

By Sara Rosenberg

New York, Dec. 10 – Royalty Pharma downsized its term loan B-4 to $700 million from $1.5 billion and reduced pricing to Libor plus 275 basis points from talk of Libor plus 300 bps to 325 bps, according to a market source.

The B-4 loan still has a 0.75% Libor floor, an original issue discount of 99˝ and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

With the term loan B-4 downsizing, the company upsized its term loan A to $2 billion from $1 billion, the source added.

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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