Loan & DebtMay 28, 2026, 04:09 PM
Royalty Pharma Secures New $1.8B Revolving Credit Facility
AI Summary
Royalty Pharma plc, along with its subsidiaries Royalty Pharma Holdings Ltd and Royalty Pharma Manager, LLC, has entered into a new Revolving Credit Agreement for an unsecured revolving credit facility of $1.8 billion. This new facility, effective May 22, 2026, refinances and replaces the previous credit agreement from September 2021. The facility matures on May 22, 2031, and includes customary covenants such as maintaining specific consolidated leverage, portfolio cash flow, and coverage ratios.
Key Highlights
- Royalty Pharma plc entered into a new $1.8 billion unsecured revolving credit facility.
- The new facility refinances and replaces the existing revolving credit agreement from September 15, 2021.
- The Revolving Credit Facility matures on May 22, 2031.
- Interest rate options include a base rate or SOFR-based rates, plus an applicable margin.
- Key covenants include a consolidated leverage ratio at or below 4.00:1.00 (4.50:1.00 after acquisition).
- A consolidated portfolio cash flow ratio at or below 5.00:1.00 (5.50:1.00 after acquisition) is also required.
- A consolidated coverage ratio at or above 2.50:1.00 of Adjusted EBITDA to consolidated interest expense must be maintained.
Price Impact
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