New Issue: Elan prices upsized $850 million eight-year notes at par to yield 6¼%

By Paul A. Harris

Portland, Ore., May 23 - Elan Finance plc and Elan Finance Corp. priced an upsized $850 million issue of eight-year senior notes (Ba3/B+/) at par to yield 6¼% on Thursday, according to an informed source.

The yield printed on top of yield talk.

Morgan Stanley & Co. ran the books.

The Dublin, Ireland-based neuroscience-based biotechnology company plans to use the proceeds for general corporate purposes, acquisitions, share purchases and capital expenditures.

Issuer:	Elan Finance plc and Elan Finance Corp.
Amount:	$850 million, increased from $800 million
Maturity:	June 15, 2021
Securities:	Senior notes
Bookrunner:	Morgan Stanley & Co.
Co-manager:	J&E Davy Securities
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	465 bps
Call features:	Make-whole call at Treasuries plus 50 bps until June 15 2016, then callable at 104.688, 103.125, 101.563, par on and after June 15, 2019
Equity clawback:	35% at 106.25 until June 15, 2016
Change-of-control put:	101%
Trade date:	May 23
Settlement date:	May 31
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	6¼% area
Marketing:	Roadshow

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