Royalty Pharma Seeks Lower Rate on $2.72 Billion of Loans
9/25/2012 7:56:43 AM
Royalty Pharma Finance Trust, a company that acquires revenue-producing intellectual property in biopharmaceutical products, is seeking to lower the rate it pays on $2.72 billion of loans, according to a person with knowledge of the transaction. The interest rate on a $1.88 billion term loan due in May 2018 will be reduced to 2.75 percentage points to 3 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 75 basis-point floor. A basis point is 0.01 percentage point.