RPI Finance Trust comes to market with $150 million term loan add-on

By Sara Rosenberg

New York, July 11 - RPI Finance Trust (Royalty Pharma) launched on Wednesday morning a $100 million incremental senior secured term loan (Baa2/BBB-) due Nov. 9, 2018, upsized it to $150 million on good demand and allocated the deal by the afternoon, according to sources.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor, in line with existing November 2018 term loan pricing, sources said. The add-on and the existing debt are fungible.

The add-on was at an original issue discount of 99, whereas the existing debt was sold at a discount of 98½ when it was syndicated in May.

There is 101 soft call protection through May 30, 2013.

Amortization is 1% per annum.

Covenants include a maximum total leverage of 4.0 times and a minimum coverage ratio of 3.5 times.

Also, the loan has an excess cash flow sweep of 50% if leverage is greater than 3.5 times and 25% if leverage is equal to or less than 3.5 times leverage.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead arrangers on the deal.

Proceeds will be used for general corporate purposes.

Commitments were due at noon ET on Wednesday.

Closing is expected early next week.

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

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