Royalty Pharma $6 billion senior notes offering

Davis Polk advised Royalty Pharma plc in connection with its Rule 144A/Regulation S offering of $1 billion aggregate principal amount of its 0.75% senior notes due 2023, $1 billion aggregate principal amount of its 1.20% senior notes due 2025, $1 billion aggregate principal amount of its 1.75% senior notes due 2027, $1 billion aggregate principal amount of its 2.20% senior notes due 2030, $1 billion aggregate principal amount of its 3.30% senior notes due 2040 and $1 billion aggregate principal amount of its 3.55% senior notes due 2050. Royalty Pharma intends to use the net proceeds from the offering, together with available cash on hand, to repay its existing Term Loan A and Term Loan B facilities and to pay fees and expenses incurred in connection with the offering.

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, Gilead’s HIV franchise, Merck’s Januvia, Novartis’ Promacta, and Vertex’s Kalydeco, Symdeko and Trikafta, and four development-stage product candidates.

The Davis Polk corporate team included partner Richard D. Truesdell Jr., counsel Jeffrey S. Ramsay and associates Jacqueline Marino and Daniel Chao. Partners Simon Witty and Dan Hirschovits, counsel Simon J. Little and John Taylor and associates James Harmer and Aya Aboulatta provided English law advice. Partners Michael Mollerus and Jonathan Cooklin provided U.S. and English tax advice. Members of the Davis Polk team are based in the New York and London offices.