Biovail calls 7 7/8% notes due 2010

By Michelle Anderson

Rochester, N.H., Feb. 28 - Biovail Corp. announced it is redeeming all outstanding 7 7/8% senior subordinated notes due 2010 on April 1.

The notes are being redeemed at 101.969% of the principal amount plus accrued interest. The notes were issued in 2002.

As previously reported, the company said it could no longer justify the debt after a search for products to acquire proved fruitless.

"We could no longer justify a U.S.-based sales and marketing infrastructure that was not properly leveraged. Accordingly, management believes that the elimination of long-term debt, a focused and robust investment in research and development, and increasing dividends to our shareholders are more fiscally prudent uses of cash," said Douglas Squires, chief executive officer, in a news release.

Biovail is a Toronto-based specialty pharmaceutical company.

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