25 unchanged sentences
As of December 31, 2025, 100% of our outstanding Notes have fixed interest rates.
−Removed: We have a $1.8 billion Revolving Credit Facility with a variable interest rate that had no outstanding borrowing balance as of December 31, 2024.
−Removed: We are subject to interest rate fluctuation exposure related to the Revolving Credit Facility for the amounts drawn.
+Added: We have a $1.8 billion Revolving Credit Facility, a $350 million Uncommitted Credit Facility and a $380 million Term Loan with variable interest rates.
+Added: The Revolving Credit Facility and the Uncommitted Credit Facility had no outstanding borrowings as of December 31, 2025.
+Added: We are subject to interest rate fluctuation exposure related to the amounts drawn under the credit facilities.
Credit and Counterparty Risk
We are exposed to credit risk related to the counterparties with which we do business.
−Removed: We are subject to credit risk from our royalty assets, our receivables and our financial instruments, primarily derivative and available for sale debt securities.
+Added: We are subject to credit risk from our royalty assets, our receivables and our financial instruments, primarily available for sale debt securities.
The majority of our royalty assets and receivables arise from contractual royalty agreements that pay royalties on the sales of underlying pharmaceutical products in the United States, Europe and the rest of the world, with concentrations of credit risk limited due to the broad range of marketers responsible for paying royalties to us and the variety of geographies from which our royalties on product sales are derived.
−Removed: The products in which we hold royalties are marketed by leading biopharmaceutical industry participants, including, among others, Vertex, GSK, Roche, Johnson & Johnson, Biogen, AbbVie, Astellas, Pfizer, Novartis and Gilead.
+Added: The products in which we hold royalties are marketed by leading biopharmaceutical industry participants, including, among others, Vertex, GSK, Biogen, Roche, Astellas, Pfizer, Johnson & Johnson, AbbVie, Servier, Gilead, Amgen and Alnylam.
As of December 31, 2025 and 2024 , Vertex, as the marketer and payor of our royalties on the cystic fibrosis franchise, accounted for 32% and 34% of our current portion of financial royalty assets, respectively, and represented the largest individual marketer and payor of our royalties.
Refer to “Understanding Our Results of Operations” within this MD&A for a discussion of the royalty payors accounting for 10% or more of our total income and other revenues for 2025 and 2024.
−Removed: We monitor the financial performance and creditworthiness of the counterparties to our royalty agreements, derivative financial instruments, and available for sale debt securities so that we can properly assess and respond to changes in their credit profile.
−Removed: To date, we have not experienced any significant losses with respect to the collection of income or revenue on our royalty assets or available for sale debt securities or on the settlement of our derivative financial instruments.
−Removed: If a counterparty becomes bankrupt, or otherwise fails to perform its obligations under a derivative financial instruments due to financial difficulties, we may experience significant delays in obtaining any recovery under the derivative financial instruments in a bankruptcy or other reorganization proceeding.
+Added: We monitor the financial performance and creditworthiness of the counterparties to our royalty agreements and available for sale debt securities so that we can properly assess and respond to changes in their credit profile.
+Added: To date, we have not experienced any significant losses with respect to the collection of income or revenue on our royalty assets or available for sale debt securities.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.