Elan $850 million seven-year fixed-rate notes talked 7¾%-8%, floater talked Libor plus 400-425 bps

By Paul A. Harris

St. Louis, Nov. 8 - Price talk on Elan Corp. plc's dual-tranche $850 million offering of seven-year notes (B3/B-) emerged Monday, according to a syndicate source, who added that pricing is expected to take place Wednesday.

The fixed-rate notes, which come with four years of call protection, are talked at 7¾% to 8%. The floating-rate notes, which come with two years of call protection, are talked at three-month Libor plus 400 to 425 basis points.

Morgan Stanley is the bookrunner for the Rule 144A with registration rights offering. Goldman Sachs & Co. is the joint lead manager. J&E Davy Holdings is the co-manager.

Proceeds will be used to fund the tender for existing notes, as well as for working capital and general corporate purposes.

Elan is a Dublin, Ireland, biotechnology company.

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