By Paul A. Harris
St. Louis, Nov. 17 - Elan Finance Corp. priced an upsized $615 million two-part offering of seven-year notes (B3/B) on Friday, according to an informed source.
The Dublin, Ireland, biotechnology company priced a $465 million tranche of fixed-rate notes at par to yield 8 7/8%, on the tight end of the 9% area price talk.
In addition Elan priced a $150 million tranche of floating-rate notes at par to yield three-month Libor plus 412 basis points, in the middle of the Libor plus 400 to 425 basis points price talk.
The combined transaction was upsized from $500 million.
Goldman Sachs & Co. was the bookrunner for the Rule 144A and Regulation S offering. Morgan Stanley and Davy Securities were the co-managers.
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.
| Issuer: | Elan Finance Corp.
|
| Amount: | $615 million (increased from $500 million)
|
| Maturity: | Dec. 1, 2013
|
| Security description: | Senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Co-managers: | Morgan Stanley, Davy Securities
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Fixed-rate notes
|
| Amount: | $465 million
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 428 bps
|
| Call features: | Callable on Dec. 1, 2010 at 104.438, 102.219, par on and after Dec. 1, 2012
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at 108.875
|
| Price talk: | 9% area
|
|
|
| Floating-rate notes
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| Amount: | $150 million
|
| Coupon: | Three-month Libor plus 412 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 412 bps
|
| Call features: | Callable on Dec. 1, 2008 at 102, 101, par on and after Dec. 1, 2010
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at par plus applicable coupon
|
| Price talk: | Libor plus 400 to 425 bps
|
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