Elan to raise $425m to cut debt

ELAN made another step towards its financial recovery yesterday, by launching a bond and equity issue to pay down part of its debt pile.

Elan said it would issue 35 million new shares, and issue a convertible bond which will raise around $425 million for the pharmaceutical firm.

Elan said the proceeds from the offerings will be used to repurchase outstanding Liquid Yield Option Notes, or LYONs, which are due to for repayment in 2018, but can be repurchased by Elan in mid-December. It said any excess proceeds raised would be put towards general corporate purposes.