New Issue: Elan Finance sells upsized $625 million 8¾% seven-year notes at 98.71 to yield 9%

By Paul A. Harris

St. Louis, Sept. 29 - Elan Finance plc/Elan Finance Corp. priced an upsized $625 million issue of 8¾% seven-year senior notes (B2/B/) at 98.71 to yield 9% on Tuesday, according to an informed source.

The yield printed tight to the 9% to 9¼% price talk.

Morgan Stanley and Citigroup were joint bookrunners for the quick-to-market deal, which was upsized from $600 million.

Proceeds will be used for refinancing certain existing debt of Elan and its subsidiaries and for general corporate purposes.

The issue is a Dublin-based neuroscience-based biotechnology company.

Issuers:	Elan Finance plc/Elan Finance Corp.
Face amount:	$625 million, upsized from $600 million
Proceeds:	$616.938 million (approximate)
Maturity:	Oct. 15, 2016
Security description:	Senior notes
Bookrunners:	Morgan Stanley, Citigroup
Co-manager:	Davy Securities
Coupon:	8¾%
Price:	98.71
Yield:	9%
Spread:	606 bps
Call features:	Make-whole at Treasuries plus 50 bps until Oct. 15, 2012, then callable at 108.75, 104.375, 102.188%, par on and after Oct. 15, 2015
Trade date:	Sept. 29
Settlement date:	Oct. 2
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	9% to 9¼%

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