Royalty Pharma set to launch $1 billion add-on term loan B-4 on Monday

By Sara Rosenberg

New York, April 24 – Royalty Pharma Investments Finance Trust is set to hold a call at 1 p.m. ET on Monday to launch a $1 billion add-on term loan B-4 due Nov. 9, 2020, according to a market source.

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

Amortization on the loan is 1% per annum, and covenants include a maximum leverage ratio and a minimum coverage ratio.

The loan has a 50% excess cash flow sweep when leverage is more than 3.5 times. Otherwise the sweep is set at 25%.

Proceeds will be used to refinance the company’s existing term loan B-1, the source added.

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

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