By Cristal Cody
Tupelo, Miss., Aug. 24 – Royalty Pharma plc priced a $6 billion six-tranche Rule 144A and Regulation S offering of senior notes (Baa3/BBB-/BBB-) on Monday, according to an informed source.
A $1 billion tranche of 0.75% three-year notes priced at a spread of Treasuries plus 80 basis points.
Initial price talk was at the Treasuries plus 110 bps area.
A $1 billion tranche of 1.2% five-year notes, talked at the 140 bps spread area, priced at a Treasuries plus 115 bps spread.
The company sold $1 billion of 1.75% seven-year notes with a spread of 155 bps over Treasuries.
Price talk was at the Treasuries plus 180 bps area.
Royalty Pharma sold $1 billion of 2.2% 10-year notes with a Treasuries plus 180 bps spread, compared to talk at the 205 bps spread area.
A $1 billion tranche of 3.3% 20-year notes was sold at a Treasuries plus 225 bps spread.
The notes were guided at the 250 bps over Treasuries area.
Also, $1 billion of 3.55% 30-year notes priced at a spread of 245 bps over Treasuries.
Initial guidance was at the 265 bps spread area.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The notes are guaranteed by Royalty Pharma Holdings Ltd.
The company held fixed income investor calls for the offering last week.
Proceeds will be used to repay the company’s term loan A and term loan B facilities and 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: | $6 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | Aug. 24
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 2, 2023
|
| Coupon: | 0.75%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 110 bps area
|
|
|
| Five-year notes
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| Amount: | $1 billion
|
| Maturity: | Sept. 2, 2025
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| Coupon: | 1.2%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 140 bps area
|
|
|
| Seven-year notes
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| Amount: | $1 billion
|
| Maturity: | Sept. 2, 2027
|
| Coupon: | 1.75%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | Sept. 2, 2030
|
| Coupon: | 2.2%
|
| Spread: | Treasuries plus 180 bps
|
| Price guidance: | Treasuries plus 205 bps area
|
|
|
| 20-year notes
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| Amount: | $1 billion
|
| Maturity: | Sept. 2, 2040
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| Coupon: | 3.3%
|
| Spread: | Treasuries plus 225 bps
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 30-year notes
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| Amount: | $1 billion
|
| Maturity: | Sept. 2, 2050
|
| Coupon: | 3.55%
|
| Spread: | Treasuries plus 245 bps
|
| Price guidance: | Treasuries plus 265 bps area
|
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