Biovail plans redemption of all 7 7/8% notes due 2010

By Jennifer Chiou

New York, Dec. 6 - Biovail Corp. announced it intends to redeem all of its 7 7/8% senior subordinated notes due April 1, 2010.

The redemption date is April 2.

The Toronto-based specialty pharmaceutical company said it is required to pay a 1.969% premium for the early redemption of the notes.

"Despite an extensive search of potential product-acquisition opportunities, we were unable to find any that satisfied our internal financial criteria," Biovail chief executive officer Douglas Squires said in a news release.

"We could no longer justify a U.S.-based sales and marketing infrastructure that was not properly leveraged. Accordingly, management believes that the elimination of long-term debt, a focused and robust investment in research and development, and increasing dividends to our shareholders are more fiscally prudent uses of cash."

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