S&P: Royalty Pharma loan BBB-

S&P said it affirmed the ratings on RPI Finance Trust, which does business as Royalty Pharma, including its BBB- corporate credit rating and BBB- rating on the senior secured debt.

The outlook remains stable.

The agency also said it assigned a BBB- rating to the new $4.483 billion term loan B, consisting of a $1.1 billion funded term loan B and $3.383 billion delayed-draw term loan B.

The ratings reflect news that will partially finance the $2.2 billion acquisition of royalties on Tsyabri with debt, S&P explained.

The transaction is neutral to credit metrics, the agency noted.

RPI is the largest and leading pharmaceutical royalty acquisition company with a proven track record and a relatively broad portfolio by product and by marketer, S&P said.

The acquisition of Tysabri adds another blockbuster product to the portfolio, the agency said.

Product concentration has grown, in part due to strong growth of Tecfidera, a treatment for multiple sclerosis, and related milestone payments received, which pro forma for the acquisition of Tysabri will be 27% of the company's revenue, S&P said.

With the addition of Tysabri, the company's therapeutic exposure to multiple sclerosis will increase to 43% because of its existing interest in Tecfidera, the agency said.

Still, the company has interests in more than 20 products and is not overly reliant on its top three products, S&P added.

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