NEW YORK, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Royalty Pharma plc announced today that it has priced an offering of $6 billion senior unsecured notes, comprised of the following tranches:

• $1 billion aggregate principal amount of 0.75% Senior Notes due 2023;
• $1 billion aggregate principal amount of 1.20% Senior Notes due 2025;
• $1 billion aggregate principal amount of 1.75% Senior Notes due 2027;
• $1 billion aggregate principal amount of 2.20% Senior Notes due 2030;
• $1 billion aggregate principal amount of 3.30% Senior Notes due 2040; and
• $1 billion aggregate principal amount of 3.55% Senior Notes due 2050.

The Notes were issued in a private offering exempt from registration in accordance with Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes will be guaranteed on a senior unsecured basis by Royalty Pharma Holdings Ltd. The sale of the Notes is expected to be completed on or about September 2, 2020, subject to customary closing conditions.

Pablo Legorreta, Royalty Pharma’s Founder and Chief Executive Officer, stated, “We are excited to announce our inaugural bond offering as a publicly listed company. With this transaction, we expect to lock in a weighted average coupon of 2.125% while more than doubling our weighted average maturity to 12.5 years. We will also have access to additional liquidity through a $1.5 billion unsecured revolving credit facility, further enhancing our financial flexibility. Our capital structure following this offering will position us exceptionally well to deliver on our growth objectives and to advance our role as a leading funder of biopharma innovation.”

Royalty Pharma intends to use the net proceeds from the Notes, together with available cash on hand, to repay its existing Term Loan A and Term Loan B facilities and to pay fees and expenses incurred in connection with the offering.

About Royalty Pharma

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly - directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 45 commercial products, including AbbVie and J&J’s Imbruvica, Astellas and Pfizer’s Xtandi, Biogen’s Tysabri, Gilead’s HIV franchise, Merck’s Januvia, Novartis’ Promacta, and Vertex’s Kalydeco, Symdeko and Trikafta, and four development-stage product candidates.