Elan tenders for up to $186 million 8 7/8% notes, floaters due 2013

By Jennifer Chiou

New York, Aug. 30 - Elan Corp. plc announced the start of an asset sale offer to purchase up to $186 million of its 8 7/8% senior fixed-rate notes due 2013 and floating-rate notes due 2013.

The company's wholly owned subsidiaries, Elan Finance plc and Elan Finance Corp., are conducting the offer.

The companies are offering par plus accrued interest, and the offer will end at 11:59 p.m. ET on Sept. 29.

On Sept. 17, 2009, Janssen Alzheimer Immunotherapy, a newly formed subsidiary of Johnson & Johnson, completed the acquisition of substantially all of the assets and rights of Elan related to its Alzheimer's immunotherapy program, according to a company release.

In addition, Johnson & Johnson, through its affiliate, Janssen Pharmaceutical, invested $885 million in exchange for newly issued American Depositary Receipts of Elan while also committing to fund the further development and commercialization of the program. In consideration for the transfer of these rights and assets, Elan received a 49.9% equity interest in Janssen Alzheimer.

The release stated that this transaction constituted an asset sale under the indenture of the notes, thus prompting the issuers to make this required offer to purchase the notes at par.

Questions may be directed to Chris Burns (800 252-3526) or David Marshall (353 1 709-4444).

Elan is a Dublin-based neuroscience-based biotechnology company.

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