Royalty Pharma $2 billion senior notes offering

Davis Polk advised Royalty Pharma plc in connection with its SEC-registered offering of $2 billion aggregate principal amount of senior notes, consisting of $600 million aggregate principal amount of 4.450% senior notes due 2031, $900 million aggregate principal amount of 5.200% senior notes due 2035 and $500 million aggregate principal amount of 5.950% senior notes due 2055. Royalty Pharma intends to use the net proceeds from the offering for general corporate purposes. The notes are guaranteed by Royalty Pharma Holdings Ltd and Royalty Pharma Manager, LLC on a senior unsecured basis.

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 nonprofits 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 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 17 development-stage product candidates.

The Davis Polk capital markets team included partner Richard D. Truesdell Jr., counsel David (Wei Fu) Li and associates Hope Goimarac and Yusuke Tsuzuki. Counsel John Taylor and associates Vivek Thanki, Ayse Atun and Andrew Young provided English law advice. Partners Kara L. Mungovan and Dominic Foulkes provided U.S. and U.K. tax advice. Members of the Davis Polk team are based in the New York and London offices.