--- title: "Royalty Pharma signs new $1.8 billion revolving credit facility maturing in 2031" url: "https://aibio.space/news/royalty-pharma-signs-new-1-8-billion-revolving-credit-facility/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2026-05-28" section: "Debt Financing" tickers: "NASDAQ:RPRX" source: "https://www.sec.gov/Archives/edgar/data/1802768/000119312526245163/d131735d8k.htm" summary: "Royalty Pharma signed a $1.8 billion unsecured revolving credit facility maturing May 22, 2031, and repaid its 2021 facility in full. The covenants cap fun" --- By the aibio.space news desk. Sources - [Royalty Pharma plc Form 8-K filed May 28, 2026 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1802768/000119312526245163/d131735d8k.htm) - [Royalty Pharma plc exhibit d131735dex101.htm to the May 28, 2026 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1802768/000119312526245163/d131735dex101.htm) - [Royalty Pharma plc Form 10-K filed February 11, 2026: business overview and signatures (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1802768/000180276826000003/rprx-20251231.htm) [RPRX](https://aibio.space/companies/royalty-pharma/) 2026-05-28 # Royalty Pharma signs new $1.8 billion revolving credit facility maturing in 2031 Tickers [RPRX](https://aibio.space/companies/royalty-pharma/) Royalty Pharma signed a $1.8 billion unsecured revolving credit facility maturing May 22, 2031, and repaid its 2021 facility in full. The covenants cap funded debt at 4.00 times Adjusted EBITDA, and the exhibit names a different borrower from the 8-K. ## Key facts - **Company**: Royalty Pharma plc (NASDAQ: RPRX) - **News type**: Debt Financing - **Primary source**: [Royalty Pharma plc Form 8-K filed May 28, 2026 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1802768/000119312526245163/d131735d8k.htm) *An executive reading charts on a tablet. Photo: Olu Eletu, CC0, via StockSnap. The picture shows the field, not the companies named.* Royalty Pharma plc (Nasdaq: [RPRX](https://aibio.space/companies/royalty-pharma/)) entered into a $1.8 billion unsecured revolving credit agreement on May 22, 2026. The facility matures on May 22, 2031. It replaces the company's revolving credit agreement dated September 15, 2021, and the company says all obligations under that agreement were repaid and its commitments terminated in full. The company reported the agreement in a [Form 8-K filed May 28, 2026](https://www.sec.gov/Archives/edgar/data/1802768/000119312526245163/d131735d8k.htm) under Items 1.01 and 2.03. ## Interest and fees At the company's option, loans bear interest at a base rate or at Term SOFR, Daily SOFR or an alternative currency rate, plus an applicable margin. The base rate is the highest of the administrative agent's prime rate, the federal funds rate plus 0.5% and Term SOFR plus 1%. A commitment fee is payable on the unused portion, at a rate set by a pricing grid. The 8-K does not give the rates, but the credit agreement does. Pricing is set by the company's debt ratings. The initial level is Pricing Level 2, for ratings of BBB / BBB / Baa2, with an unused commitment fee of 0.10% and an applicable rate of 1.125% on Term SOFR and Daily SOFR loans and 0.125% on base rate loans. At the top level, for ratings of BBB+ / BBB+ / Baa1 or better, the rates are 0.08%, 1.00% and 0.00%. At the bottom level, for BB / BB / Ba2 or worse, they are 0.30%, 1.625% and 0.625%. ## Covenants Three ratios apply. Funded debt to Adjusted EBITDA must stay at or below 4.00 to 1.00, or 4.50 to 1.00 after a qualifying material acquisition. The portfolio cash flow ratio must stay at or below 5.00 to 1.00, or 5.50 to 1.00 after such an acquisition. Adjusted EBITDA to consolidated interest expense must be at least 2.50 to 1.00. The 8-K says each term is defined and calculated with further adjustments set out in the agreement. The agreement also restricts entities that are not obligors from taking on more debt, limits liens, and restricts certain mergers and fundamental changes involving obligors. ## Banks and agents Bank of America, N.A. is administrative agent. BofA Securities, Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc. and TD Securities (USA) LLC are lead arrangers and bookrunners. Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc. and TD Securities (USA) LLC are also co-syndication agents. DNB Bank ASA, New York Branch, M&T Bank, Société Générale SA, Sumitomo Mitsui Banking Corporation and U.S. Bank National Association are co-documentation agents. The 8-K names no placement agent or underwriter, and it names no counsel. ## Who is the borrower The 8-K names Royalty Pharma plc as the borrower, with Royalty Pharma Holdings Ltd and Royalty Pharma Manager, LLC as guarantors. It also describes Royalty Pharma Holdings Ltd as a non-wholly owned consolidated subsidiary. The agreement itself reads differently. It defines Royalty Pharma plc, an English public limited company, as Holdings, and Royalty Pharma Holdings Ltd, a private company registered in England and Wales, as the Borrower. The 8-K does not explain the difference, and the filing leaves open which entity owes the money. ## Size and drawings The agreement's preliminary statements limit total loans and letters of credit to $1,800,000,000. The filings do not say how much was drawn at signing, which is the figure that would show how much of the facility the company was using. ## The company's recent figures The annual report filed February 11, 2026 shows revenue of $2.38 billion for 2025, up from $2.26 billion in 2024. Net income fell to $770.9 million from $859.0 million. Cash provided by operations fell to $2.49 billion from $2.77 billion. Year-end 2024 cash and cash equivalents were $929.0 million. Those figures cover the years before the facility. They do not show the ratios the covenants test, and the 8-K gives no 2026 figures against which to measure the 4.00 to 1.00 leverage cap or the 2.50 to 1.00 coverage floor. ## What the filing leaves out The 8-K gives no reason for replacing the 2021 facility and no comparison between the old and new terms beyond the maturity date, so it does not show whether the new facility costs more or less than the old one. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story RPRX Royalty Pharma plc NASDAQ · United States Open the starter desk ## More in Debt Financing Debt Financing ### [Pelthos amends Horizon venture loan, funds Loans E to H and adds Loans I and J](https://aibio.space/news/pelthos-amends-horizon-venture-loan-funds-loans-e-h-adds-loans/) Oct 30, 2026 Debt Financing ### [Repligen announces $1.0 billion private convertible notes transaction](https://aibio.space/news/repligen-announces-1-0-billion-private-convertible-notes-transaction/) Oct 30, 2026 Debt Financing ### [FOXO to buy Ludwig Enterprises preferred stock with majority voting power](https://aibio.space/news/foxo-buy-ludwig-enterprises-preferred-stock-majority-voting-power/) Oct 29, 2026 --- Source page: https://aibio.space/news/royalty-pharma-signs-new-1-8-billion-revolving-credit-facility/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Royalty Pharma signs new $1.8 billion revolving credit facility maturing in 2031", 2026-05-28, https://aibio.space/news/royalty-pharma-signs-new-1-8-billion-revolving-credit-facility/