Published on 7/15/2021 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Royalty Pharma prices $1.3 billion of notes, one part social
By Devika Patel
Knoxville, Tenn., July 15 – Royalty Pharma plc priced a $1.3 billion offering of guaranteed senior social notes (Baa3/BBB-/BBB-), according to an FWP filing with the Securities and Exchange Commission. The deal priced in two tranches on Thursday.
The company sold $600 million of 2.15% notes due Sept. 2, 2031 at 98.263 to yield 2.344% with a spread of 105 basis points over Treasuries.
These notes were talked in the Treasuries plus 125 basis points area.
Royalty Pharma priced $700 million of 3.35% notes due Sept. 2, 2051 at 155 bps over Treasuries. These notes were priced at 97.565 to yield 3.481%.
The 2051 notes were talked in the Treasuries plus 175 bps area.
BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The notes are guaranteed by Royalty Pharma Holdings Ltd.
Proceeds will be advanced to Royalty Pharma Holdings, which will use the funds for general corporate purposes.
Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.
| Issuer: | Royalty Pharma plc
|
| Guarantor: | Royalty Pharma Holdings Ltd.
|
| Amount: | $1.3 billion
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Senior co-manager: | Truist Securities Inc.
|
| Co-managers: | PNC Capital Markets LLC, DNB Markets, Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC, Academy Securities Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, Cabrera Capital Markets LLC, R. Seelaus & Co. Inc., Samuel A. Ramirez & Co. Inc., Siebert Williams Shank & Co., LLC and Tigress Financial Partners, LLC
|
| Trade date: | July 15
|
| Settlement date: | July 26
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 2031 bonds
|
| Amount: | $600 million
|
| Securities: | Social bonds
|
| Maturity: | Sept. 2, 2031
|
| Coupon: | 2.15%
|
| Price: | 98.263
|
| Yield: | 2.344%
|
| Spread: | Treasuries plus 105 bps
|
| Call feature: | Make whole call at Treasuries plus 20 bps until June 2, 2031 and then a par call
|
| Guidance: | Treasuries plus 125 bps area
|
|
|
| 2051 bonds
|
| Amount: | $700 million
|
| Securities: | Senior notes
|
| Maturity: | Sept. 2, 2051
|
| Coupon: | 3.35%
|
| Price: | 97.565
|
| Yield: | 3.481%
|
| Spread: | Treasuries plus 155 bps
|
| Call feature: | Make whole call at Treasuries plus 25 bps until March 2, 2051 and then a par call
|
| Guidance: | Treasuries plus 175 bps area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
