Capital Royalty Purchases Royalty Bonds

Through a series of acquisitions in the second quarter of 2009, Capital Royalty purchased more than $30 million of royalty bonds from several financial institutions. The bonds are backed by royalties based on worldwide sales of a product that treats patients with chronic kidney disease.  The product is expected to achieve blockbuster status (annual revenues of greater than $1 billion) within the next few years.

Due to stressed market conditions and the agility of the Capital Royalty team the bonds were purchased with highly attractive yields after an extensive intellectual property due diligence process.