Healthcare Royalty lifts term loan B to $850 million, trims pricing

By Sara Rosenberg

New York, July 15 – Healthcare Royalty Inc. (HCRX Investments HoldCo LP) upsized its seven-year senior secured covenant-lite term loan B to $850 million from $750 million and reduced pricing to Libor plus 225 basis points from talk in the range of Libor plus 250 bps to 275 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Truist, BMO Capital Markets, SVB, Raymond James and Stifel are the joint lead arrangers on the deal. Citi is the administrative agent.

Recommitments were scheduled to be due at 1 p.m. ET on Thursday, the source added.

Proceeds will be used with $650 million of unsecured notes, downsized from $750 million, and an initial public offering to repurchase Holdings LP class B units as part of a reorganization buyback transaction.

The company also plans on getting a new senior secured revolving credit facility.

Closing is expected in late July.

Healthcare Royalty is a Stamford, Conn.-based royalty acquisition company focused on the biopharmaceutical industry.

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