RPI Finance sets $4.48 billion of term loans at Libor plus 200 bps

By Sara Rosenberg

New York, March 13 – RPI Finance Trust (Royalty Pharma) finalized pricing on its $1.1 billion six-year term loan B-6 and a $3,383,000,000 delayed-draw term loan B-6 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

Unchanged was that the term loans have a 0% Libor floor, the funded term loan has an original issue discount of 99.75, the delayed-draw term loan has a par issue price, and both loans have 101 soft call protection for six months beginning on the delayed-draw funding date.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are the lead banks on the deal (Baa2/BBB-).

Proceeds from the funded term loan will be used to help fund the acquisition of Perrigo Co. plc’s rights to the royalty stream from the global net sales of the multiple sclerosis drug Tysabri for $2.2 billion of cash at closing and up to $650 million of potential milestone payments based upon future global net sales of Tysabri during 2018 and 2020.

The delayed-draw term loan will be used to refinance a term loan B-5 priced at Libor plus 250 bps with a 0% Libor floor. The B-5 tranche has 101 soft call protection that expires in April.

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

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