Elan plans to use €155m bond offer to cut debt levels

IRISH pharmaceutical firm Elan plans to further reduce its debt levels using the proceeds made from a bond offer to institutional investors.

The Dublin-headquartered company — which earlier this week put the planned flotation of its Athlone-based drug delivery subsidiary, EDT, on ice due to continuing disappointing market conditions — is to offer “subject to market conditions”, $200 million (€155m) in bonds to institutional buyers.

The company, chiefly known for its co-ownership of the Tysabri multiple sclerosis drug, is set to refinance its debt by offering the above value in senior notes, carrying a coupon of 8.75%, due to mature in six years time. The re-financing would also see a combination of $100m, or so, of existing cash reserves and the proceeds from the bond issuance used to redeem the company’s $300m of floating rate notes, due to mature in 2011.