Shearman & Sterling advised PDL BioPharma, Inc. in connection with the issuance by QHP Royalty Sub LLC, its wholly owned special purpose subsidiary, of $300 million of senior secured 10.25% notes due 2015, which notes are secured by the right to receive 60% of all royalties from sales by Genentech, Inc. of certain pharmaceutical products licensed by PDL to Genentech. The notes offering is a securitization transaction intended to monetize certain of PDL's antibody humanization patents and royalties. PDL intends to use a sizable portion of the net offering proceeds to pay a special cash dividend to its stockholders.

The Shearman & Sterling team advising on the deal included partners Peter Lyons (New York-M&A), Mark Hyland (San Francisco-Capital Markets), Samuel Waxman (New York-Intellectual Property) and Michael Shulman (Washington, DC-Tax); Of Counsel Ji Hoon Hong (New York-Capital Markets); and associates Ji Liu (Menlo Park-Capital Markets), Phillip Monk (Menlo Park-Capital Markets), Gloria Jung (New York-Intellectual Property) and Patrick Valenti (Washington, DC-Tax).