On December 22, 2023, Royalty Pharma plc (the ?Company?) and Royalty Pharma Holdings Ltd., a non-wholly owned consolidated subsidiary of the Company, entered into Amendment No. 3 (the ?Third Amendment?) to the Amended and Restated Revolving Credit Agreement, dated as of September 15, 2021, as amended by Amendment No. 1 to Credit Agreement, dated as of October 31, 2022 and as further amended by Amendment No.

2 to Credit Agreement, dated as of May 16, 2023, with Bank of America, N.A., as Administrative Agent and the other lenders thereto (as so amended, the ?Credit Agreement?). The Third Amendment (i) increases the borrowing capacity under the Credit Agreement from $1.5 billion to $1.8 billion, (ii) extends the maturity of $1,690 billion of the revolving commitments under the Credit Agreement from October 31, 2027 to December 22, 2028 and (iii) makes certain other technical modifications. The remaining $110 million of revolving commitments under the Credit Agreement matures on October 31, 2027.

The Credit Agreement provides for an unsecured revolving credit facility (the ?Revolving Credit Facility?) that is subject to an interest rate, at our option, of either (a) a base rate determined by reference to the highest of (1) the administrative agent?s prime rate, (2) the federal funds rate plus 0.5% and (3) Term SOFR plus 1% or (b) Daily SOFR, the Alternative Currency Term Rate or the Alternative Currency Daily Rate (each as defined in the Credit Agreement), plus in each case, the applicable margin. The Credit Agreement that governs the Revolving Credit Facility contains certain customary covenants, that among other things, require us to maintain (i) a consolidated leverage ratio at or below 4.00 to 1.00 (or at or below 4.50 to 1.00 following a qualifying material acquisition) of funded debt to Adjusted EBITDA, each as defined and calculated with the ratio level calculated with further adjustments as set forth in the Credit Agreement and (ii) a consolidated coverage ratio at or above 2.50 to 1.00 of Adjusted EBITDA to consolidated interest expense, each as defined and calculated with further adjustments as set forth in the Credit Agreement. The Credit Agreement includes customary covenants for credit facilities of its type that limit the ability to engage in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments and acquiring and disposing of assets.