Elan offering $200m in notes to investors
Irish pharmaceutical company Elan is to offer $200m (€152m) in notes to investors that are due for repayment in 2016.
The funds raised by Elan, which bear a 8.75pc coupon, will be used to redeem floating rate notes issued by the company which are due for repayment next year.
The funds will also be used for general corporate purposes.
Earlier this week, Elan said that it intended to reduce its gross debt by about 20pc to $1.24bn in the near term by retiring $500m of debt that was due to mature in 2011 and 2013.
It will also extend the maturity profile of its remaining debt. The planned $300m reduction follows the early repayment of $225m of debt last September.
The company also shelved plans for the second time in two years to spin off its drug technology unit in a near-$1bn flotation, citing an inability to secure an "appropriate valuation" in the current market.
"We continue to carefully manage both our balance sheet and cost structure to ensure we remain financially strong," said chief executive Kelly Martin.
Ratings agency Moody's said yesterday that Elan's new bond doesn't affect Elan's B2 rating.