Royalty Pharma Investments raises add-on term loan B-4 to $2.8 billion

By Sara Rosenberg

New York, May 1 – Royalty Pharma Investments Finance Trust upsized its add-on term loan B-4 due Nov. 9, 2020 to $2.8 billion from a revised amount of $2 billion and an initial size of $1 billion, according to a market source.

Pricing on the add-on loan is still Libor plus 275 basis points with a 0.75% Libor floor, in line with the existing term loan B-4.

The add-on term loan is being issued at par, after firming the other day at the tight end of the 99¾ to par talk.

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

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

Proceeds will be used to refinance the company’s existing term loan B-1 and, as a result of the upsizings, its term loan B-2, 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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