Elan sets price talk for $500 million two-part seven-year notes

By Paul A. Harris

St. Louis, Nov. 15 - Elan Finance Corp. set price talk for its $500 million offering of seven-year notes (B3/B) in two tranches, an informed source told Prospect News on Wednesday.

A tranche of fixed-rate notes, which come with four years of call protection, is talked at the 9% area.

Meanwhile a tranche of floating-rate notes, which come with two years of call protection, is talked at Libor plus 400 to 425 basis points.

Pricing is expected on Friday.

Goldman Sachs & Co. is the bookrunner for the Rule 144A and Regulation S offering. Morgan Stanley and Davy Securities are the co-managers.

The issuer is a Dublin, Ireland, biotechnology company.

Proceeds will be used to redeem Elan Capital Corp. Ltd.'s $254 million 6½% convertible notes due 2008 not converted into equity and to repay a portion Athena Neurosciences Finance, LLC's $613 million 7¼% guaranteed senior notes due 2008.

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