Royalty Pharma Announces Pricing of $1.3 Billion of Senior Unsecured Notes, Including $600 Million Social Bond
July 15 2021 - 4:54PM
Royalty Pharma plc (Nasdaq: RPRX) announced today that it has
priced an offering of $1.3 billion of senior unsecured notes,
comprised of the following (collectively, the “Notes”):
- $600 million of 2.15% Senior Notes
due 2031 (the “Social Bonds”); and
- $700 million of 3.35% Senior Notes
due 2051 (the “2051 Notes”).
The Notes will be guaranteed on a senior unsecured basis by
Royalty Pharma Holdings Ltd. The offering is expected to close on
July 26, 2021, subject to the satisfaction of customary closing
conditions.
Royalty Pharma intends to use an amount equal to the net
proceeds from the Social Bonds to finance or refinance, in whole or
part, one or more new or existing “Eligible Investments”. Eligible
Investments are expected to support the achievement of United
Nations Sustainable Development Goals (“SDG”) 3 (Good Health and
Well-Being) and SDG 9.5 (Enhance Scientific Research, Encourage
Innovation). Eligible Investments will include investments made
beginning on the issue date of the Social Bonds, or in the 24
months prior to the issue date, that are in alignment with the four
core components of the Social Bond Principles, 2021, administered
by the International Capital Markets Association.
Royalty Pharma intends to use the net proceeds from the 2051
Notes for general corporate purposes.
BofA Securities, Citigroup, Goldman Sachs & Co. LLC, J.P.
Morgan and Morgan Stanley are acting as joint lead book-running
managers and as representatives of the underwriters for the
offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the Notes, nor will there be
any sale of these Notes in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
Royalty Pharma’s Social Bond Framework
Royalty Pharma has developed a Social Bond Framework aligned
with the International Capital Market Association’s Social Bond
Principles, 2021, which are voluntary guidelines that promote
transparency and integrity in the social bond market. As outlined
in Royalty Pharma's Social Bond Framework, Royalty Pharma intends
to allocate an amount equal to the net proceeds of social bond
issuances to finance or refinance, in whole or in part, one or more
new or existing Eligible Investments related to partnerships that
fund innovation in the biopharmaceutical industry intended to treat
diseases such as orphan diseases (as defined by the United States
Food and Drug Administration), top diseases or leading causes of
death (as defined by the World Health Organization and/or the
United Nations) and diseases that are underserved by research and
treatment options.
Royalty Pharma has obtained a second-party opinion from ISS ESG,
one of the world’s leading independent environmental, social and
governance (“ESG”) research, analysis and rating houses. ISS ESG
has reviewed that Royalty Pharma’s Social Bond Framework aligns
with the Social Bond Principles issued by the International Capital
Markets Association.
“We are pleased to announce the pricing of our first ever Social
Bond, underscoring our strong commitment to corporate social
responsibility,” stated Pablo Legorreta, founder and Chief
Executive Officer of Royalty Pharma. “By providing capital to
academia, not-for-profit institutions and biopharmaceutical
companies, Royalty Pharma endeavors to positively impact human
health, support the development of innovative therapies and
accelerate productivity across the biopharma ecosystem.”
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, J&J’s Tremfya, Gilead’s Trodelvy, Merck’s Januvia,
Novartis’ Promacta, and Vertex’s Kalydeco, Orkambi, Symdeko and
Trikafta, and nine development-stage product candidates.
Forward-Looking Statements
This press release contains statements that constitute
“forward-looking statements” as that term is defined in the United
States Private Securities Litigation Reform Act of 1995, including
statements regarding the receipt and use of the net proceeds from
the offering of the Notes and social bond objectives, and
statements that express the company’s opinions, expectations,
beliefs, plans, objectives, assumptions or projections regarding
future events or future results, in contrast with statements that
reflect historical facts. Examples include discussion of our
strategies, financing plans, growth opportunities and market
growth. In some cases, you can identify such forward-looking
statements by terminology such as “anticipate,” “intend,”
“believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,”
“will,” “would,” “could” or “should,” the negative of these terms
or similar expressions. Forward-looking statements are based on
management’s current beliefs and assumptions and on information
currently available to the company. However, these forward-looking
statements are not a guarantee of our performance, and you should
not place undue reliance on such statements. Forward-looking
statements are subject to many risks, uncertainties and other
variable circumstances, and other factors. Such risks and
uncertainties may cause the statements to be inaccurate and readers
are cautioned not to place undue reliance on such statements. Many
of these risks are outside of the company’s control and could cause
its actual results to differ materially from those it thought would
occur. The forward-looking statements included in this document are
made only as of the date hereof. The company does not undertake,
and specifically declines, any obligation to update any such
statements or to publicly announce the results of any revisions to
any such statements to reflect future events or developments,
except as required by law.
Royalty Pharma Investor Relations and
Communications:+1 (212) 883-6772ir@royaltypharma.com
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