New Issue: Elan upsized $400 million convertible yields 6.5%, up 49.9%, greenshoe exercised

By Ronda Fears

Nashville, Oct. 31 - Elan Capital Corp. Ltd., a finance unit of Elan Corp. plc, sold an upsized $400 million of five-year guaranteed convertible notes at par to yield 6.5% with a 49.89% initial conversion premium in the Regulation S market, via lead manager Morgan Stanley. The $60 million greenshoe also has been exercised.

Elan also sold 35 million ordinary shares of stock at $4.95 each.

Proceeds are earmarked for the nearly $500 million put on Elan's 0% convertible due 2018 on Dec. 14, which is anticipated to be exercised.

Terms of the deal are:

Issuer:	Elan Capital Corp. Ltd.
Reference shares:	Elan Corp. plc ordinary shares
Issue:	Guaranteed convertible notes
Lead manager:	Morgan Stanley
Amount:	$400 million, upped from $250 million
Greenshoe:	$60 million
Maturity:	Oct. 30, 2008
Coupon:	6.5%
Price:	Par
Yield:	6.5%
Conversion premium:	49.89%
Conversion price:	$7.42
Conversion ratio:	134.7709
Contingent conversion:	120%
Ratings:	S&P: CCC
Pricing date:	Oct. 30
Settlement date:	Nov. 11
Distribution:	Regulation S

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