Published on 8/11/2010 in the Prospect News High Yield Daily.
New Issue: Elan prices $200 million add-on to 8¾% notes due Oct. 15, 2016 at 96 to yield 9.62%
By Paul A. Harris
St. Louis, Aug. 11 - Elan Finance plc and Elan Finance Corp. priced a $200 million add-on to their 8¾% senior notes due Oct. 15, 2016 (B2/B) at 96 to yield 9.62% on Wednesday, according to an informed source.
The reoffer price came a dollar less than the cheap end of the 97 to 97.5 price talk.
Morgan Stanley and Citigroup were the joint bookrunners for the quick-to-market deal.
The Dublin, Ireland-based biotechnology company will use the proceeds to redeem all of its floating-rate notes due 2011.
The original $625 million issue priced at 98.71 to yield 9% in September 2009.
Issuer: | Elan Finance plc and Elan Finance Corp.
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Security description: | Add-on to the 8¾% senior notes due Oct. 15, 2016
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Face amount: | $200 million
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Proceeds: | $192 million
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Maturity: | Oct. 15, 2016
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Bookrunners: | Morgan Stanley, Citigroup
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Co-manager: | J&E Davy
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Coupon: | 8¾%
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Price: | 96
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Yield: | 9.62%
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Spread: | 787 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2012, then callable at 108.75, 104.375, 102.188, par on and after Oct. 15, 2015
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Trade date: | Aug. 11
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Settlement date: | Aug. 17
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Ratings: | Moody's: B2
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| Standard & Poor's: B
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 97 to 97.5
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Marketing: | Quick-to-market
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Original issue: | $625 million priced at 98.71 to yield 9% in September 2009
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Total issue size: | $825 million
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