Royalty Pharma Announces Pricing of $1.3 Billion of Senior Unsecured Notes, Including $600 Million Social Bond
- Social Bond issuance underscores Royalty Pharma’s strong commitment to ESG
- Supports United Nations Sustainable Development Goals
NEW YORK, NY, July 15, 2021 - 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. Truist Securities, PNC Capital Markets LLC, DNB Markets, Scotiabank, TD Securities, Academy Securities, AmeriVet, Blaylock Van, LLC, Cabrera Capital Markets LLC, R. Seelaus & Co., LLC, Ramirez & Co., Inc., Siebert Williams Bank and Tigress Financial Partners are acting as co-managers 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 plc
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.
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:
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