New Issue: Elan prices $200 million add-on to 8¾% notes due Oct. 15, 2016 at 96 to yield 9.62%

By Paul A. Harris

St. Louis, Aug. 11 - Elan Finance plc and Elan Finance Corp. priced a $200 million add-on to their 8¾% senior notes due Oct. 15, 2016 (B2/B) at 96 to yield 9.62% on Wednesday, according to an informed source.

The reoffer price came a dollar less than the cheap end of the 97 to 97.5 price talk.

Morgan Stanley and Citigroup were the joint bookrunners for the quick-to-market deal.

The Dublin, Ireland-based biotechnology company will use the proceeds to redeem all of its floating-rate notes due 2011.

The original $625 million issue priced at 98.71 to yield 9% in September 2009.

Issuer:	Elan Finance plc and Elan Finance Corp.
Security description:	Add-on to the 8¾% senior notes due Oct. 15, 2016
Face amount:	$200 million
Proceeds:	$192 million
Maturity:	Oct. 15, 2016
Bookrunners:	Morgan Stanley, Citigroup
Co-manager:	J&E Davy
Coupon:	8¾%
Price:	96
Yield:	9.62%
Spread:	787 bps
Call features:	Make-whole call 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:	Aug. 11
Settlement date:	Aug. 17
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	97 to 97.5
Marketing:	Quick-to-market
Original issue:	$625 million priced at 98.71 to yield 9% in September 2009
Total issue size:	$825 million

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