Bloomberg News

Royalty Pharma Said to Seek $3.6 Billion in Loans to Refinance

July 13, 2011

July 13 (Bloomberg) -- Royalty Pharma Finance Trust, a company that acquires revenue-producing intellectual property in biopharmaceutical products, is seeking $3.6 billion of loans to refinance debt, according to a person with knowledge of the transaction

Bank of America Corp. is arranging the loans for two units of the New York-based company, said the person who declined to be identified because the terms are private. RP Select Finance Trust is seeking an $850 million term loan due in five years. A separate unit, RPI Finance Trust, is seeking $2.75 billion of term loans maturing in 5.25 and 6.75 years, the person said.

The bank will host a lender meeting tomorrow at 2 p.m. in New York.

Lenders on the RPI term loans are offered a one-year soft- call protection of 101 cents, the person said, meaning the unit would have to pay 1 cent more than face value to refinance the debt during its first year.

Goldman Sachs Group Inc. and Citigroup Inc. are also arrangers on the loans.

--Editors: Faris Khan, Richard Bedard

To contact the reporter on this story: Mike Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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