S&P: Elan unit converts unchanged

Standard & Poor's said it is not changing its CCC+ rating on $460 million in 6.5% senior unsecured convertible notes issued by Elan Capital Corp. Ltd., a subsidiary of Elan Corp. plc (B/stable/--).

These notes, due Nov. 10, 2008, were contractually subordinated to the notes of subsidiary Elan Pharmaceutical Investments III Ltd., which have now been retired.

Elan Corp. has obtained additional subsidiary guarantees for $650 million in 7¼% senior unsecured notes issued by Athena Neuroscience Finance (due Feb. 21, 2008).

These guarantees were not obtained for the Elan Capital convertible notes, thus it is S&P's opinion that the convertible notes are structurally subordinated to Elan's other existing senior unsecured debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.