By Paul A. Harris
St. Louis, Nov. 10 - Elan Finance plc in conjunction with Elan Finance Corp. priced an upsized $1.15 billion of seven-year senior notes (B3/B) in fixed- and floating-rate tranches on Wednesday, according to a syndicate source.
The Dublin, Ireland, biotechnology company sold $850 million of fixed-rate notes at par to yield 7¾%. Price talk was 7¾% to 8%.
The company also sold $300 million of floating-rate notes at par to yield three month Libor plus 400 basis points. Price talk was three-month Libor plus 400 to 425 basis points.
Morgan Stanley ran the books for the Rule 144A with registration rights issue. The joint lead manager was Goldman Sachs & Co. The co-manager was J&E Davy Holdings.
The issue was upsized from $850 million.
Proceeds will be used to fund the tender for the company's existing notes and for working capital and general corporate purposes.
| Issuer: | Elan Finance plc/Elan Finance Corp.
|
| Amount: | $1.15 billion
|
| Maturity: | Nov. 15, 2011
|
| Security description: | Senior notes
|
| Bookrunner: | Morgan Stanley
|
| Joint lead manager: | Goldman Sachs & Co.
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| Co-manager: | J&E Davy Holdings
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| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
|
|
| Fixed-rate tranche
|
| Amount: | $850 million
|
| Coupon: | 7¾%
|
| Price: | Par
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| Yield: | 7¾%
|
| Spread: | 387 basis points
|
| Call features: | Callable after Nov. 15, 2008 at 103.875, 101.938, par on and after Nov. 15, 2010
|
| Price talk: | 7¾%-8%
|
|
|
| Floating-rate tranche
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| Amount: | $300 million
|
| Coupon: | Three-month Libor plus 400 basis points
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| Price: | Par
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| Yield: | Three-month Libor plus 400 basis points
|
| Call features: | Callable after Nov. 15, 2006 at 102, 101, par on or after Nov. 15, 2008
|
| Price talk: | Three-month Libor plus 400-425 basis points
|
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