OREANDA-NEWS. S&P Global Ratings today assigned its 'BBB-' senior secured debt rating to RPI Finance Trust's (d/b/a Royalty Pharma) proposed new term loan facilities. The company will use proceeds entirely to refinance existing term loans. The company plans to refinance the $705 million outstanding under its term B-3 term loan. It will also refinance all outstanding term A-1 term loans with a new tranche of term A loans in an aggregate principal amount of $1.775 billion. The ratings are the same as our ratings on the company's existing senior secured term loans.

Our corporate credit rating on RPI Finance Trust is 'BBB-' with a stable outlook. Debt leverage will remain the same following the transaction.

RPI Finance Trust is the largest and leading pharmaceutical royalty acquisition company, with a proven track record and a diverse portfolio by product and by marketer. The company continues to maintain a high-quality portfolio of diverse pharmaceutical royalty streams. Key products in the portfolio include Tecfidera (a treatment for multiple sclerosis; Biogen Idec); Humira (a treatment for rheumatoid arthritis; AbbVie Inc.); and Emtriva/Truvada/Atripla (treatments for AIDS/HIV; Gilead)--all major leading products in their respective therapeutic classes. These three products accounted for about 54% of RPI's revenue, with Tecfidera accounting for 30%. We consider the visibility of RPI's royalty revenues and cash flows to be relatively high.

For the corporate credit rating rationale on RPI Finance Trust, see the summary analysis published on May 24, 2016.