Brief: Theravance Biopharma To Sell Trelegy Ellipta Royalty Interests To Royalty Pharma For About $1.1 Bln In Upfront Cash With Over $1.5 Bln In Potential Total Value

Theravance Biopharma

13/07/2022 21:31

July 13 (Reuters) - Theravance Biopharma Inc  TBPH.O :
    * PRESS RELEASE - THERAVANCE BIOPHARMA TO SELL TRELEGY
ELLIPTA
ROYALTY INTERESTS TO ROYALTY PHARMA FOR APPROXIMATELY $1.1
BILLION IN UPFRONT CASH WITH OVER $1.5 BILLION IN POTENTIAL
TOTAL VALUE
    * THERAVANCE BIOPHARMA - ROYALTY PHARMA TO INVEST UP TO $40
MILLION TO ADVANCE DEVELOPMENT OF AMPRELOXETINE IN MULTIPLE
SYSTEM ATROPHY
    * THERAVANCE BIOPHARMA - ROYALTY PHARMA TO GET  UNSECURED
LOW
SINGLE-DIGIT ROYALTIES  FOR DEVELOPMENT OF AMPRELOXETINE
    * THERAVANCE BIOPHARMA INC -  HAS ENTERED INTO AGREEMENT TO
SELL
ALL OF ITS UNITS IN THERAVANCE RESPIRATORY CO, TO ROYALTY PHARMA
    * THERAVANCE BIOPHARMA INC - TRANSACTION INTENDED TO PROVIDE
NEAR-, MID- AND LONG-TERM VALUE TO CO WITH AN UPFRONT CASH
PAYMENT OF ABOUT $1.1 BILLION
    * THERAVANCE BIOPHARMA-DEAL TO PROVIDE UP TO $250 MILLION IN
ADDITIONAL MILESTONE PAYMENTS BASED ON CERTAIN TRELEGY NET SALES
THRESHOLDS BETWEEN 2023 & 2026
    * THERAVANCE BIOPHARMA-DEAL TO PROVIDE OUTER YEAR ROYALTIES
TO CO
PROVIDING AN OPPORTUNITY TO RECEIVE AN ESTIMATED NPV OF
APPROXIMATELY $200 MILLION
    * THERAVANCE BIOPHARMA INC - INTENDS TO INITIATE A
MULTI-STEP
PROCESS TO ELIMINATE ITS OUTSTANDING DEBT AND RETURN CAPITAL TO
SHAREHOLDERS
    * THERAVANCE BIOPHARMA INC -  TO REPAY NON-RECOURSE TRELEGY
NOTES
FOR ABOUT $420 MILLION CONTEMPORANEOUSLY WITH CLOSING OF TRELEGY
ROYALTY TRANSACTION
    * THERAVANCE BIOPHARMA INC - INTENDS TO INITIATE OF A TENDER
OFFER
TO RETIRE ABOUT $230 MILLION OF CO'S 2023 CONVERTIBLE SENIOR
NOTES AFTER DEAL CLOSE
    * THERAVANCE BIOPHARMA- AFTER PAYING DOWN DEBT, ESTIMATED
TAXES,
TRANSACTION EXPENSES, CO ESTIMATES HAVING ABOUT $430 MILLION OF
CASH ON ITS BALANCE SHEET
    * THERAVANCE BIOPHARMA INC - AT COMPLETION OF  MULTI-STEP
PROCESS,
CO EXPECTS TO BE WELL-CAPITALIZED WITH A STREAMLINED AND
DEBT-FREE BALANCE SHEET

Source text for Eikon:  ID:nPn5XSBsPa 
Further company coverage:  TBPH.O