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Capital Royalty Purchases Interest in Royalty Portfolio

In the fourth quarter of 2009, a global pharmaceutical company sold a royalty interest in two leading drugs targeting different therapeutic areas to a consortium of investors (including Capital Royalty) for more than $100 million.

Royalty Bond Primer for Issuers

Royalty bonds are a viable alternative source of capital for companies and institutions seeking to monetize royalty entitlements. Specifically, royalty bonds are a source of non-dilutive debt financing with a competitive cost of capital for issuers, provide a means of managing risk without eliminating exposure to a royalty stream, and have favorable tax and accounting treatment. To date, over $2 billion of royalty bonds have been structured, issued, and traded by royalty investors including Capital Royalty.